eMudhra shares rise on market debut, list at premium

Shares of eMudhra made a positive stock market debut on Wednesday with the stock listing at ₹270 apiece on the NSE, a premium of more than 5% as compared to its IPO issue price of ₹256 per share. On the BSE, eMudhra shares started trading at ₹271.

“The company’s tepid yet positive listing can be attributed to current market conditions, good prospects, and reasonably good responses from retail investors. The growing demand for data privacy, data protection, and digital transformation will help the company grow substantially in the medium to long term. However, the competitive nature of the industry and the rich pricing of the issue make it suitable for long-term investors post listing. Those who applied for listing gains can maintain a stop loss of ₹260,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The initial public offer (IPO) of digital signature certificate provider eMudhra was subscribed 2.72 times on the last day of its subscription. The ₹413 crore-IPO got bids for 3,09,02,516 shares against 1,13,64,784 shares on offer.

The portion meant for Qualified Institutional Buyers (QIBs) received 4.05 times subscription, while the category for Retail Individual Investors (RIIs) got subscribed 2.61 times and non-institutional investors 1.28 times.

The initial share sale had a fresh issue of up to ₹161 crore and offer for sale of up to 98,35,394 equity shares. Price range for the offer was at ₹243-256 per share. eMudhra Ltd raised ₹124 crore from anchor investors, ahead of its share sale.

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.

eMudhra is a licensed certifying authority in India with a market share of 37.9% in the digital signature certificates market space in financial year 2021. The company has been engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.