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The initial public offering (IPO) of digital signature certificate provider eMudhra had opened for public subscription on Friday and and conclude on Tuesday, May 24, 2022. The firm has fixed a price band of 243-256 a share for its issue. It has raised 124 crore from anchor investors ahead of its issue.

As of 2 pm on final day of the bidding, eMudhra IPO has been fully subscribed 1.47 times with retail investors' category booked 2.21x, NIIs 0.37x, QIBs 0.96x, BSE data showed. 

The company has cut the size of the fresh issue from 200 crore to 161 crore. Besides, there will be an Offer-For-Sale (OFS) of 98.35 lakh shares by promoters and existing shareholders.

After commanding premium in the last few sessions, there has been no GMP activity for eMudhra shares in the grey market today. Shares of the company are expected to list on the stock exchanges BSE and NSE on June 1, 2022.

The IPO has a fresh issue aggregating up to 161 crore and offer for sale of up to 98,35,394 equity shares. It has a price range of 243-256 per share. On Thursday, eMudhra Ltd raised 124 crore from anchor investors. At the upper end of the price band, the IPO is expected to fetch 413 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.

“The scale of operation is relatively modest and digital security and paperless transformation market is highly competitive. At the upper end of the price band, the post issue FY22 annualized P/E works out to 49.0x which we believe is factoring the positives. Hence, we recommend a Neutral rating on the issue," said brokerage Angel One.

eMudhra is the largest licensed certifying authority in India and has been engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.

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