eMudhra sets IPO price band at Rs 243-256 per share, sale to open on May 20

Digital signature certificate provider eMudhra Ltd on Monday said it has fixed a price band of Rs 243-256 a share for its Rs 413-crore Initial Public Offering (IPO).

The initial share-sale will open for public on May 20 and conclude on May 24, and 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. Besides, there will be an Offer-For-Sale (OFS) of 98.35 lakh shares by promoters and existing shareholders.

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

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.

At the upper end of the price band, the public issue is expected to fetch Rs 412.79 crore.

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.

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.

The company 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.

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.