e-Mudhra IPO - 7 Things to Know
One of India’s largest digital signature authentication companies, e-Mudhra Ltd, has filed its draft red herring prospectus (DRHP) with SEBI for its proposed IPO. Typically, the SEBI approval process takes anywhere between 2-3 months, post which the actual IPO process starts.
Here are Seven interesting facts to know about e-Mudhra IPO
1. The IPO will comprise of a fresh issue of Rs.200 crore and an offer for sale of 85.1 lakh shares by promoters and early shareholders. The total size of the overall IPO issue will depend on the pricing arrived at.
2. Among the major participants in the offer for sale, the two largest participants are Venkataraman Srinivasan offering 32.9 lakh shares and Taarav Pte Ltd offering 31.9 lakh shares.
The balance shares will be offered by Kaushik Srinivasan, Lakshmi Kaushik and Anand Srinivasan and they will offer 15.2 lakh shares between them.
3. E-Mudhra is also exploring a pre-IPO placement of shares of up to Rs.39 crore and if that is successful, the size of the IPO would be reduced proportionately. The company will also explore an anchor placement closer to the issue opening date.
4. Out of the Rs.200 crore of fresh funds raised, the company will utilize Rs.35 crore to repay debt, Rs.41 crore for working capital purposes and Rs.47 crore for funding the data centre operations, including equipment.
The company will also deploy a sum of Rs.30 crore for product related cost and for investing in e-Mudhra Inc.
5. E-Mudhra currently has debt of Rs.51 crore on its books of which 70% will be repaid with the fresh issue proceeds. For FY21, e-Mudhra reported 13.73% higher sales revenue at Rs.132.45 crore, while net profit for the fiscal year was up 37.68% at Rs.25.36 crore.
Coverage related solvency ratios are likely to improve substantially post the IPO.
6. E-Mudhra is India's largest licensed certifying authority for digital signature certificates. It has a commanding market share of 38% as of FY21.
The share has been going up consistently. It has over 1.2 lakh retail customers and over 550 enterprise customers using its digital certification services.
7. The IPO of e-Mudhra Ltd will be lead managed by IIFL Securities, Yes Securities and Ind-Orient Financial Services. The dates for the IPO would be finalized once the SEBI observations on the DRHP come in.
That will be followed with the filing of RHP with the Registrar of Companies and the actual IPO process.
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