Digital Signature Certifier, eMudra subscribed 48 per cent against the proposed size on the first day of its initial public offering (IPO). Good demand from retail investors boosted the IPO on Friday, though institutional buyers showed no interest.
Data provided on NSE showed that today’s IPO received cumulative bids of 55,06,172 equity shares against 1,13,64,784 equity shares – a subscription of 48%.
The portion earmarked for retail individual investors was subscribed 94 per cent of the reserve size. On the other hand, the portion earmarked for non-institutional investors (NIIs) got subscribed only 4% of the allocated size. Whereas the portion earmarked for Qualified Institutional Buyers (QIBs) saw zero bidding on the first day.
Under the IPO, 50% of the stake is reserved for qualified institutional buyers, while 15% is earmarked for non-institutional investors, and 35% is allocated to retail individual investors.
The company plans to raise approx. 412.79 crore from IPO. Bids in this issue will be allowed till May 24.
The IPO will not be available on 21st and 22nd May due to weekend holidays.
New issues in the IPO include: 161 crore and offer for sale (OFS) of 9,835,394 equity shares.
a price band of 243-256 per equity share with a face value of Rs. 5 each.
The proceeds from the issue will be used for repayment of all or part of certain borrowings – in whole or in part; working capital requirements; financing of equipment procurement and other related costs for data centers proposed to be set up in India and overseas locations; financing expenditure related to product development; Investing in eMudra Inc to cover your business development, sales, marketing and other related costs for future growth; And finally on to general corporate objectives.
Post the IPO, eMudra will be listed on BSE and NSE.