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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.
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