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eMudhra IPO: Issue fully subscribed on Day 3, retail portion booked 1.73 times, QIB 47%

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eMudhra IPO: The company will use Rs 35 crore of the net proceeds to pre-pay or repay loans, while Rs 40.2 crore will be utilised to meet working capital requirementseMudhra IPO: Issue fully subscribed on Day 3, retail portion booked 1.73  times, QIB 47%

The IPO of eMudhra Limited, India's largest licensed certified authority in the digital signature certificates space, was fully subscribed by the morning of May 24, the third and final day of subscription.

Investors had bid for 1.18 crore shares against an IPO size of 1.13 crore units. Retail investors booked 1.73 times or the shares set aside for them.

Non-institutional investors booked 17 percent of the shares allotted to them, while qualified institutional buyers' portion was subscribed 47 percent against a quota of 31.34 lakh shares.

The company is looking 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 by 18.16 percent to 61.03 percent.

Around 50 percent of the net offer has been reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.

The company intends to utilise Rs 35 crore of the net proceeds from the fresh issue to pre-pay or repay loans, while Rs 40.2 crore will be used for meeting 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.

It also 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 go to the promoters.

The company did a pre-IPO placement of 1,603,617 equity shares for a cash price of Rs 243.a 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.

Disclaimer: The views and investment tips of experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisionsAround 50 percent of the net offer has been reserved for qualified institutional buyers, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.

The company intends to utilise Rs 35 crore of the net proceeds from the fresh issue to pre-pay or repay loans, while Rs 40.2 crore will be used for meeting 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.

It also 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 go to the promoters.

The company did a pre-IPO placement of 1,603,617 equity shares for a cash price of Rs 243.a 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.

Disclaimer: The views and investment tips of experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions
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