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Digital signature certifier, eMudhra on the first day of its initial public offering (IPO) subscribed by 48% against the offered size. Healthy demand from retail investors boosted the IPO on Friday, however, institutional buyers showed no interest.
Data given on NSE showed that today the IPO received cumulative bids of 55,06,172 equity shares against 1,13,64,784 equity shares - subscribing by 48%.
The portion kept for retail individual investors subscribed by 94% against the reserved size. On the other hand, the portion kept for non-institutional investors (NII) subscribed by merely 4% against the allocated size. While the portion kept for qualified institutional buyers (QIBs) witnessed zero bidding on the first day.
Under the IPO, 50% of the portion is reserved for qualified institutional buyers, while 15% is kept for non-institutional investors, and 35% is allocated to retail individual investors.
The company plans to raise about ₹412.79 crore from the IPO. Biddings in the issue will be allowed till May 24.
The IPO will not be available on May 21 and 22 due to the weekend holidays.
The IPO comprises fresh issues worth ₹161 crore and an offer for sale up (OFS) to 9,835,394 equity shares.
A price band of ₹243-256 per equity share has been set with a face value of ₹5 each.
The proceeds from the issue will be utilised for - repayment in full or in part of all or certain borrowings; working capital requirements; purchase of equipment and funding of other related costs for data centers proposed to be set up in India and overseas locations; funding of expenditure relating to product development; investment in eMudhra INC to augment its business development, sales, marketing and other related costs for future growth; and finally on general corporate purposes.
Post the IPO, eMudhra will list on BSE and NSE.
