The ₹412.80-crore initial public offering of eMudhra closes today for public subscription. At the end of day 2, the issue was subscribed 0.96 times, thanks to a strong response from retail investors.

The price band of the IPO has been fixed at ₹243– 256 a share and the lot size is 58 shares.

Retail investors portion was subscribed 1.69 times while the quota set aside for QIBs and non-institutional investors received bids for 0.25 times and 0.16 times respectively. 

Anchor investors

Ahead of the issue, the company garnered ₹123.83 crore from anchor investors, who included 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. 

To use funds for various activities

Out of the IPO proceeds of the fresh issue, ₹35 crore will be utilised for the repayment of borrowings, ₹40.22 crore for funding working capital requirements; ₹46.36 crore for equipmentpurchase and funding of other related costs for data centres; ₹15.03 crore for funding 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.

Business model

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 Ltd, Yes Securities (India) Ltd, and Indorient Financial Services Ltd are the Book Running Lead Managers and Link Intime India Private Ltd is the registrar to the Issue.

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