eMudhra, India's largest accredited certifying authority with a third of the digital signature certifications market, has filed a draft red herring prospectus for an initial public offering with capital markets regulator Sebi.
The initial share sale will include a fresh issuance of Rs 200 crore worth of shares as well as an offer to sell 85,10,638 equity shares by many selling shareholders, including promoters.
Through the offer for sale, Venkatraman Srinivasan and Taarav Pte Ltd will sell 32,89,257 and 31,91,490 equity shares, respectively. Kaushik Srinivasan is selling 5,10,638 stock shares, Lakshmi Kaushik is selling 5,04,307 equity shares, Arvind Srinivasan is selling 8,81,869 equity shares, and Aishwarya Arvind is selling 1,33,077 equity shares.
According to the DRHP, the company may consider a pre-IPO placement of up to Rs 39 crore.
The sale is being managed by IIFL Securities, Yes Securities, and Indorient Financial Services.
The company that provides digital signature certificates would pay off its debts with about 35 crore. The company's total borrowings were 51.22 crore as of October 15.
The company will spend 40.22 crore on working capital and 46.36 crore on purchasing equipment and funding data centres in India and other countries.
eMudhra would invest 15 crore in product development and 15.27 crore in eMudhra Inc to supplement its business development, sales, marketing, and other related costs in order to grow in the future.
Over 20 public and private sector banks, as well as state governments, are among eMudhra's big government and banking clientele.
eMudhra's profit for FY21 increased by 37.7% to Rs 25.35 crore, up from Rs 18.41 crore the previous year. Over the previous year, revenue from operations increased by 13% to Rs 131.59 crore.