eMudhra IPO Day 2: Total subscription at 96%, retail portion booked 1.69 times, QIB 25%
India’s largest licensed certified authority (CA) in the digital signature certificates space, eMudhra Limited, saw its public issue being booked 96 percent on the second day of subscription.
Investors have bid for 1.09 crore shares against an IPO size of 1.13 crore units. Retail investors booked 1.69 times or 97.09 lakh shares of the portion set aside for them. Non-institutional investors booked 16 percent or 3.97 lakh shares allotted to them, while qualified institutional buyers’ portion was subscribed 25 percent against quota of 31.34 lakh shares.
Subscription to the eMudhra IPO will close on May 24.
The company intends to garner about Rs 413 crore through fresh issue of equity shares aggregating up to Rs 161 crore and an offer-for-sale of 9,835,394 equity shares, aggregating up to Rs 252 crore by the shareholders and promoters.
After the issue, the promoter shareholding will decline 18.16 percent and come down to 61.03 percent from 79.19 percent now held by the them in the company.
Some 50 percent of the net offer will be reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
The company intends to utilise the net proceeds from the fresh issue to pre-pay or repay in part or full the existing loans availed by the company to an extent of Rs 35 crore, while Rs 40.2 crore will be used for funding its working capital requirements. The company intends to purchase equipment and set up data centres across India and overseas, for which it will be using Rs 46.36 crore from the fresh proceeds of the issue.
It plans to spend Rs 15 crore on product development, and Rs 15.3 crore on augmenting its business development, sales, marketing and other related costs for future growth and other general corporate purposes.
The company will not get any proceeds from the OFS portion, the proceeds of which will entirely go to the promoters.
The company had done a pre-IPO placement of 1,603,617 equity shares for a cash price of Rs 243.20 per equity share for an aggregate amount of Rs 39 crore to Baring Private Equity India AIF 2, Acacia Banyan Partners, Motilal Oswal Equity Opportunities Fund Series III, Negen Capital Services Private Limited, Value Wise Consultancy Private Limited, Jagadeesan Kumar, and Krishna Kumar.
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