eMudhra Listing: eMudhra Limited, India’s largest licenced certifying authority, made its debut on the bourses today. Shares of the company began trading on the NSE at Rs 270 per share, up 5.5 per cent from the IPO price of Rs 243-256 apiece per share.On the BSE, the stock debuted at Rs 271 apiece. The Rs 412.79 crore IPO was subscribed by investors earlier this month and was fully subscribed by all categories excluding retail investors. The company had a market capitalisation of Rs 2,115.76 crore on its market debut. eMudhra is a certifying authority (CA) authorised by the controller of certifying authority (CCA) for the issuance of Digital Signature Certificates in India.
The issue was overall subscribed 2.27 times, thanks to strong bidding from qualified institutional buyers whose quota fetched 4.05 times bids. HNI and retailers’ portions were subscribed 1.28 and 2.61 times, respectively. eMudhra is the largest licensed certifying authority in India with a market share of 37.9 per cent in the digital signature certificates market space in financial year 2021 having grown from 36.5 per cent in FY20.
It is a one-stop shop player in secure digital transformation and provides a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solutions. Some of its customers include Infosys, Tata Consultancy Services, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company and Bharti AXA Life Insurance Company.
eMudhra intends to use the proceeds of the IPO towards repaying debt, funding working capital requirements, buying equipment for data centers, investing in business development, sales, marketing and other costs related to growth.
What Should Investors Do Now?
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “eMudhra Ltd. has debuted at Rs. 271.45 i.e. 6 per cent above its issue price. The company’s tepid yet positive listing can be attributed to current market conditions, good prospects, and reasonably good responses from retail investors. eMudhra is India’s largest licensed Certifying Authority and the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe. Further, eMudhra is the only Indian company to be accredited to Webtrust which makes their digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries.”
“The growing demand for data privacy, data protection, and digital transformation will help the company grow substantially in the medium to long term. However, the competitive nature of the industry, the company entering into uncharted geographies & areas of business and the rich pricing of the issue make it suitable for long-term investors post listing. Those who applied for listing gains can maintain a stop loss of Rs. 260,” Meena added.