eMudhra IPO: Public issue to open for subscription on May 20; fresh issue worth Rs 161 crore

eMudhra IPO: The initial share sale of eMudhra Ltd will open for public on May 20, 2022, as per PTI reported.

The Initial Public Offering (IPO) will end on May 24, according to the Red Herring Prospectus (RHP). The bidding for anchor investors will begin on May 19.

According to PTI, the size of the fresh issue has been reduced from Rs 200 crore to Rs 161 crore. This follows the Bengaluru-based company's pre-IPO placement of 16,03,617 shares for Rs 39 crore.

In addition, promoters and existing shareholders will make an Offer For Sale (OFS) of 98.35 lakh shares.

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

Kaushik Srinivasan will also sell 5.1 lakh equity shares, Lakshmi Kaushik will sell 5.04 lakh equity shares, Arvind Srinivasan will sell 8.81 lakh equity shares, and Aishwarya Arvind will sell 1.33 lakh equity shares, said PTI.

The proceeds from the fresh issue will be used to repay debt, meet working capital needs, purchase equipment, and cover other costs associated with data centres proposed for India and overseas locations. The money will also go toward product development, eMudhra INC investment, and general corporate purposes.

In the financial year 2021, EMudhra is the largest licenced certifying authority in India, with a market share of 37.9% in the digital signature certifications industry, PTI said.

The company's business is to provide digital trust services and enterprise solutions to consumers and organisations functioning in a variety of 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 solution, said PTI.

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