Bengaluru-based eMudhra Ltd, the largest licensed certifying authority for digital signatures in India, has set a price band for its initial public offering at Rs 243-256 a share, valuing the company at Rs 2,000 crore at the top end of the band.
Earlier the firm said its IPO will open on May 20 and close on May 24. The anchor investor bidding will start on May 19. Allotment is expected on May 30 and the stock will list on exchanges on June 1.
The IPO consists of a fresh issue of Rs 161 crore and an offer-for-sale of up to 9.84 million shares by its existing shareholders and promoters.
The OFS comprises up to 3.29 million shares by Venkatraman Srinivasan, up to 4.52 million shares by Taarav Pte Ltd, up to 5.11 lakh shares by Kaushik Srinivasan, up to 5.04 lakh shares by Lakshmi Kaushik and up to 8.82 lakh shares by Arvind Srinivasan.
On the upper price band, the company plans to raise around Rs 413 crore via IPO. The proceeds from the issue will be used to repay debt and working capital. It will also use the proceeds to buy equipment and funding of data centers proposed to be set up in India and overseas locations.
IIFL Securities, Yes Securities and Indorient Financial Services are the banks managing the sale.
The firm is the largest licensed certifying authority in India with a market share of 37.9 percent in the digital signature certificates market in fiscal year 2021 versus 36.5 percent in FY20. Its retail customer grew to 1.15 lakh from 58872 in FY2019. Further its enterprise customers rose to 518 from 249.
Total income of the company stood at Rs 132.45 crore in FY21 against Rs 116.45 crore a year ago. Net profit for the period stood at Rs 25.36 crore versus Rs 18.42 crore last year.