eMudra IPO: The public issue opened for subscription on 20 May 2022 and will be open for bidding till 24 May 2022. The company aims to raise 412.79 crore from its public offer, out of which 161 crore is targeted through fresh issuances, while the remaining 251.79 crore is expected through the Offer for Sale (OFS) route. The company has fixed the initial public offering (IPO) price band as: from 243 256 per share. Meanwhile, after a sharp jump in the secondary market in Friday’s session, the gray market sentiment regarding public issues has also improved.
eMudra IPO GMP
According to market experts, eMudra IPO GMP (grey market premium) today is 13, which is 3 more than Friday evening’s gray market premium 10. It means, gray market is expecting eMudra IPO listing 269 ( 256+ 13), Trust market observers.
eMudra IPO Membership Status
The public issue has been subscribed 0.48 times while its retail portion has been subscribed 0.94 times since the first day of bidding.
eMudra IPO Financial
The Company’s Revenue and Profit After Tax (PAT) has been growing for the last three financial years and has even exceeded the previous numbers in the first 9 months of FY22. In FY19, the total revenue of the company was 101.6 crore which went up 116.8 crore in FY20 and 132.4 crore in FY 2011. In the first 9 months of FY 2012, its total revenue is 138.3 crores.
Similarly, eMudra Ltd reported PAT: 17.4 crore in FY19 which went up 18.4 crore in FY20, which went up 25.3 crore in FY 2011. In the first 9 months of FY22, eMudhra Limited has reported the PAT of 30.3 crores. Hence, the financial position of the Company has remained strong for the last four financial years.
eMudra IPO Objective
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.
eMudra IPO Review
Giving a subscribe tag to the eMudra IPO, Aastha Jain, Senior Research Analyst, Hem Securities, said, “The company is bringing this issue on the price band. 243-256 per share on P/E multiplier of 49x on Post Issue Annual 9Month FY22 EPS basis. Being the largest licensed certification authority in India, the company is a one stop shop solution provider in the secure digital transformation and is well positioned to capture the favorable industry dynamics in India and globally. With presence in all three segments of Digital Trust Services, Digital Security Solutions and Paperless Transformation Solutions eMudra is a unique Indian company, one of the largest players in the Indian Digital Trust Services market with a market share of 17.8%. Despite being just 12 years in the market, eMudhra enjoys superior brand recognition and strong channel partner relationships. Given the company’s good financial performance and unique business model, we recommend “Subscribing” to this issue.
However, Angel One is neutral on the public issue. Angel One’s research report on eMudra IPO said, “eMudra has an established position as a licensed CA, with a strong network of channel partners, a diverse customer base and it is able to utilize part of the proceeds of the IPO. Will do to improve its data center infrastructure as it grows in overseas markets. However, the scale of operations is relatively modest and the digital security and paperless transformation market is highly competitive. At the upper end of the price band, post issue FY22 annual The P/E works out to 49.0x which we think is factoring positive. Therefore, we recommend a neutral rating on this issue.”
eMudra IPO Other Details
eMudhra IPO price band fixed from 243 256 per share. The public issue is proposed for listing on BSE and NSE and is likely to hit Dalal Street on June 1, 2022. The share allotment is expected to be finalized on 27 May 2022.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.