E-Mudhra IPO Opens Today: Issue Details, Subscription Status, GMP And Other Details

E-Mudhra IPO has opened for subscription today. Here is the low down on the issue that will help you take the decision on the investment

Issue details: Offer period – May 20-May 24, 2022

fresh issue of shares aggregating up to Rs. 161 crore

OFS for of 9,835,394 shares

Face value-Rs. 5 shares

Issue size: Rs-400-413 crore

Bid lot: 58 shares and in multiples thereof

QIB-50% of the offering

NIB: 15% of the net offering

Retail investor-35%

BRLM:Yes Securities, IIFL Securities and Indorient financial

Registrar:Linkin time

Financial of share allotment by May 27, 2022

Lsiting: June 1, 2022

About the company: E-Mudhra is the largest Certifying Authority in India with 37.9% market share. The company's services as per its website are categorised as Trust Services, Data Analytics and Cyber Securitiy.

Issue objective:

The proceeds from the fresh issuance will be deployed toward repaying debt, funding working capital, buy equipment for data centers, investment in eMudhra INC for augmenting its business development, sales, marketing and other related costs.

 

Financials

The company's net worth as of March 2021 is placed at Rs.96.06 crore. Further total assets at the company as of the period is equal to Rs. 122.48 crore.

GMP: As per ipowatch.in that tracks the GMP of unlisted securities, e-Mudhra is commanding a GMP of Rs. 10. Further as per leading business dailies which obtain sources from market observes the premium the issue is commanding is of Rs.8-10.

 

Brokerage Recommendations

Angel One- Neutral

"The scale of operation is relatively modest and digital security and paperless transformation market is highly competitive. At the upper end of the price band, the post issue FY22 annualized P/E works out to 49.0x which we believe is factoring the positives. Hence, we recommend a Neutral rating on the issue," said brokerage Angel One.

Choice Broking- Subscribe with Caution rating

"There are no listed peers having business similar to EML. At higher price band of Rs. 256, the company is demanding a P/E multiple of 114.5x, which seems to be high. Also, considering the current turbulence in the global equity market, we assign a "Subscribe with Caution" rating for the issue," said Choice Broking.

Subscription status

As per Angel One app the issue has so far as at 12:15 pm on day 1 of bidding has been subscribed for 0.28 times.