eMudhra Limited IPO | Review

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eMudhra Limited has come up with an initial public offer (IPO). It will open on May 20-24, 2022 at Rs.243-256 a share. The IPO issue size is around Rs.412.79 crore. The minimum bid will be for 58 shares and in its multiples thereafter.

Overview

eMudhra Limited was incorporated on June 16, 2008. It is the largest licensed Certifying Authority in India with a market share of 37.9% in the digital signature certificates market space. It provides Digital Trust Services and Enterprise Solutions to individuals and organizations functioning in various industries. Company issues a range of certificates including individual/organizational certificates, SSL/TLS certificates and device certificates, Digital Security, and Paperless Transformation Solutions. Moreover, it is a ‘one-stop shop’ player in secure digital transformation. The company has issued more than 50 million digital signature certificates for income tax return filing, filings with the Ministry of Corporate Affairs, tenders, foreign trade, banking, railways, and many other needs. Importantly, It is the only Indian company to be admitted as a member of the European Cloud Signature Consortium as well as Certifying Authority / Browser Forum.

Also, It is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe allowing it to sell digital identities to individuals/organizations and issue SSL/TLS certificates for website authentication globally. Besides, It has a network of 88,457 channel partners spread across all States and Union Territories in India. Furthermore, it caters to 136,233 retail customers and 563 enterprises.

Website – https://www.emudhra.com

Promoters

Venkatraman Srinivasan- 43.33%

Taarav Pte Limited – 26.16%

Promoter Holding

Pre-Issue Shareholding – 84.47%

Post-Issue Shareholding –

Strength & Weakness

Strengths	Weaknesses
Largest licensed Certifying Authority in India	Limited operation history
One-stop-shop solution provider in secure digital transformation	Company is involved in certain legal proceedings
Technology certifications, accreditations, and membership in international bodies	Dependent on one partner for a significant portion of revenue
Technology backed infrastructure	Significant competition
Diverse, long and growing customer base	Negative cash flow in the past
Leading Indian and global channel partners	Highly dependent on technology
Experienced management team	Business is seasonal in nature

Competitors

There are no listed competitor companies in India

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	101.68	17.43
31-Mar-2020	116.80	18.41
31-Mar-2021	132.45	25.36
31-Dec-2021	138.30	30.34

Object of Issue

1) Repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Company.

2) Funding working capital requirements of our Company.

3) Purchase of equipment and funding of other related costs for data centers proposed to be set up in India and overseas locations.

4) Funding of expenditure relating to product development.

5) Investment in eMudhra INC for augmenting its business development, sales, marketing, and other related costs for future growth.

6) General corporate purposes.

eMudhra Limited IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	58	Rs.14,848
Maximum	13	754	Rs.1,93,024

eMudhra Limited IPO details

IPO Opening Date	May 20, 2022
IPO Closing Date	May 24, 2022
Face Value	Rs.5 per Equity Share
IPO Price	Rs.243-256 per share
Market Lot	58 shares
Minimum Order Quantity	58 shares
Listing At	NSE, BSE
No. of shares offered	98,35,394 shares
Issue Size	Up to Rs.412.79 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

eMudhra Limited IPO Timetable

IPO Date	May 20-24, 2022
Allotment Date	May 27, 2022
Initiation of Refunds	May 30, 2022
Credit of share to Demat a/c	May 31, 2022
IPO Listing Date	June 1, 2022