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The ₹412.80-crore initial public offering of eMudhra was subscribed 0.48 times at the end of day one on Friday. The price band of the IPO, which closes on Tuesday, has been fixed at ₹243– 256 a share and the lot size is 58 shares.
Only retail investors have evinced interest, as the portion set aside for them was subscribed 0.94 times. On the other hand, QIBs are yet to bid, while the quota for non-institutional investors got just 0.04 time or 4 per cent.
Anchor investors
Ahead of the issue, the company garnered ₹123.83 crore from anchor investors. The Bengaluru-based company informed the bourses that it has allocated 48,37,336 shares at ₹256 a share to nine anchor investors such as Aditya Birla Sun Life Digital India Fund, Aditya Birla Sun Life Small Cap Fund, Motilal Oswal Dynamic Fund, Nippon India Small Cap Fund, SBI Technology Opportunities Fund, Baring Private Equity India, Hornbill Orchid India Fund, Pinebridge India Equity Fund and Abakkus Growth.
The IPO consists of a fresh issue of ₹161 crore and an offer for sale of up to 98.35 lakh shares. The issue will close on Tuesday.
Usage of funds
Out of the IPO proceeds, ₹35 crore will be utilised for repayment of borrowings, ₹40.22 crore for funding working capital requirements; ₹46.36 crore for equipments purchase and funding of other related costs for data centres; ₹15.03 crore for product development expenditure; ₹15.27 crore for investment in the eMudhra Inc. (US) for development, sales, marketing for future growth and the balance for general corporate purposes.
eMudhra is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries. Some of its customers include Infosys, TCS, Bharti AXA Life Insurance Company, Larsen & Toubro Infotech, Hindalco Industries, Mashreq Bank etc.
IIFL Securities Limited, Yes Securities (India) Limited, and Indorient Financial Services Limited are the Book Running Lead Managers and Link Intime India Private Limited is the registrar to the Issue.
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