eMudhra IPO: Digital signature certificate provider sets share price band at Rs 243-256; issue opens on 20 May

eMudhra IPO: Digital signature certificate provider eMudhra Ltd has fixed issue price band at Rs 243-256 a share for its Rs 413-crore Initial Public Offering (IPO). The company announced about the development  on Monday, a PTI report said.The Initial share-sale will open for public on May 20 and conclude on May 24.

The bidding for anchor investors will open on May 19, according to the company.

The company has cut the size of the fresh issue from Rs 200 crore to Rs 161 crore, this report said. Besides, there will be an Offer-For-Sale (OFS) of 98.35 lakh shares by promoters and existing shareholders. At the upper end of the price band, the public issue is expected to fetch Rs 412.79 crore.

eMudhra is engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations functioning in various industries. It is a 'one stop shop' player in secure digital transformation and provides a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solutions. The company has been in this business for over 12 years and has operations in more than 50 countries, the company website says. 

Promoters Venkatraman Srinivasan and Taarav Pte Ltd will offload 32.89 lakh equity and 45.16 lakh equity shares respectively as part of the OFS.

In addition, Kaushik Srinivasan will divest 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh equity shares, Arvind Srinivasan, 8.81 lakh equity shares and Aishwarya Arvind 1.33 lakh equity shares.

eMudhra IPO: How proceeds to be utilised? 

Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centre proposed to be set-up in India and overseas

locations, develop products, investment in eMudhra INC and for general corporate purposes.

Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

IIFL Securities, Yes Securities and Indorient Financial Services are the book running lead managers for the issue.

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EMudhra is the largest licensed certifying authority in India with a market share of 37.9 per cent in the digital signature certificates market space in financial year 2021 having grown from 36.5 per cent in Financial Year 2020.

Some of its customers include Infosys, Tata Consultancy Services, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company and Bharti AXA Life Insurance Company.