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eMudhra IPO Day 1: Issue subscribed 48%, retail portion booked 94%

eMudhra IPO: The company intends to utilize the net proceeds from the fresh issue to pre-pay or repay in part or full, the existing loans availed by the company to an extent of Rs 35 crore. Rs 40.2 crore will be used for funding its working capital requirements.

May 20, 2022 / 05:09 PM IST
Prudent IPO | Prudent Corporate Advisory Services Ltd (Prudent), an independent retail wealth management services group in India, made its debut on the bourses at a premium on May 20, the listing day. The stock opened at Rs 660, at a premium of 4.7 percent to its issue price of Rs 630 on the BSE, while the listing price on the NSE was Rs 650. The issue did not receive a robust response from investors and was subscribed 1.22 times its size of Rs 538.61 crore. Its QIB portion was subscribed 1.26 times, while the portion reserved for non-institutional investors got a subscription of 0.99 times. Retail investors did not evince much interest and subscribed 1.29x the portion reserved for them. The employees of the company lapped up 1.23 times of their allotted portion.

Prudent IPO | Prudent Corporate Advisory Services Ltd (Prudent), an independent retail wealth management services group in India, made its debut on the bourses at a premium on May 20, the listing day. The stock opened at Rs 660, at a premium of 4.7 percent to its issue price of Rs 630 on the BSE, while the listing price on the NSE was Rs 650. The issue did not receive a robust response from investors and was subscribed 1.22 times its size of Rs 538.61 crore. Its QIB portion was subscribed 1.26 times, while the portion reserved for non-institutional investors got a subscription of 0.99 times. Retail investors did not evince much interest and subscribed 1.29x the portion reserved for them. The employees of the company lapped up 1.23 times of their allotted portion.


India's largest licensed certified authority (CA) in the digital signature certificates space, eMudhra Limited, opened its public issue for subscription today and there was 48 percent booking at the close of first day of booking.

Subscription to the eMudhra IPO will close on May 24.

Investors have bid for 55.06 lakh shares against an IPO size of 1.13 crore units. Retail investors booked 94 percent or 54.01 lakh shares of the portion set aside for them. Non-institutional investors booked 4 percent or 1.04 lakh shares allotted to them, while qualified institutional buyers were yet to subscribe to the issue.

The company intends 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 18.16 percent and come down to 61.03 percent from 79.19 percent now held by the them in the company.

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Some 50 percent of the net offer will be reserved for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.

The company intends to utilise the net proceeds from the fresh issue to pre-pay or repay in part or full, the existing loans availed by the company to an extent of Rs 35 crore, while Rs 40.2 crore will be used for funding its 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 of the issue. It 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 entirely go to the promoters.

The company had done a pre-IPO placement of 1,603,617 equity shares for a cash price of Rs 243.20 per equity 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.

Moneycontrol News
first published: May 20, 2022 10:37 am
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