eMudhra Limited IPO Details

eMudhra Limited IPO Details

Offer period

May 20, 2022 to May 24, 2022

Price Band

₹243 to ₹256 per share

Lot Size

58 Shares

Issue Size

₹412.79 Cr

Allotment Date

May 27, 2022

Listing Date

Jun 1, 2022

 

eMudhra Company Overview

Established in 2008, eMudhra Limited is India's largest licensed Certifying Authority ("CA"). The company's operations are split into two verticals: Digital Trust Services and Enterprise Solutions. Individual/organisational certificates, digital signature certificates, SSL/TLS certificates, device certificates, a portfolio of digital security and paperless transformation solutions, multi-factor authentication, mobile application security, website security testing, IT policy assessment, and other services are provided by eMudhra Limited.

The company has strong digital signature certificate expertise. It is the only Indian company that has been directly recognised by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe, allowing it to sell digital identities to individuals and organizations worldwide and issue SSL/TLS certificates for website authentication.

 

Company Business Presence

Through a network of 88,457 channel partners distributed across India, the business has issued over 50 million digital signature certifications. The company serves 36,233 retail clients and 563 businesses as of September 30, 2021.

eMudhra's Enterprise Solutions are employed by the top 10 banks, 6 top automotive businesses, and 19 top companies among India's top 500 ranked enterprises by Economic Times in Financial Year 2020 as of September 30, 2021.

Particular

FY21

FY20

FY19

 

in Rs.Cr

% of total

in Rs.Crores

% of total

in Rs.Crores

% of total

International

25.48

19.36

14.6

12.54

10.2

10.04

Domestic

106.11

80.64

101.85

87.46

91.38

89.96

Total

131.59

100

116.45

100

101.58

100

 

eMudhra Limited - Company's Financials (Consolidated)

 

Particulars

 

31-Dec-21

 

31-Mar-21

 

31-Mar-20

(Rs. in million)

31-Mar-19

Total Assets

2,541.11

1,919.14

1,587.11

1,195.15

Total Revenue

1,383.04

1,324.54

1,167.99

1,016.80

Profit After Tax

303.4

253.59

184.16

174.36

EPS

4.36

2.49

2.37

2.48

 

eMudhra Limited- Objectives of the IPO
  1. Rs.35 crores will be utilised against repayment/ prepayment of debt.

  2. Rs.40.219 crore will be utilised to meet working capital requirements.

  3. Rs.46.634 crore would be utilised to purchase equipment and cover other related costs for establishing data centres in India and abroad.

  4. Rs.15.03 crore would be spent on product development.

  5. Rs.15.27 crore would be put back into Emudhra for future sales, market expansion, and costs.

 

eMudhra Limited IPO Pros
  1. India's largest licensed Certifying Authority.

  2. The company is a one-stop-shop for safe digital transformation solutions and is well-positioned to capitalize on favorable market dynamics in India and abroad.

  3. Certifications, accreditations, and participation in international organisations in the field of technology.

  4. Infrastructure is based on technology to support the quality and security of services and solutions.

  5. The customer base is diverse, long-standing, and growing.

  6. Collaborations with major Indian and global channel partners, as well as enterprise solution partners.

 

eMudhra Limited IPO Cons
  1. The success of the whole business depends on the ability of the company to analyze what the customers and the market needs and also research and develop resources in order to enhance the current solutions and also make new solution at a timely basis, keeping up with the needs.

  2. The corporation intends to expand into areas where it has no expertise, and hence the expansion may or may not be lucrative.

  3. The company's entire functioning is reliant on technology. If the IT platform fails for any reason, it will significantly raise costs and decrease revenue.

  4. There may be cases where the company's security get compromised, allowing cyber attacks.

 

Ratio Analysis

Particulars

FY22 (Dec,21)

FY21

FY20

FY19

Debt/Equity

0.21

0.23

0.31

0.26

Debtor Days

142

41

73

77

Current Ratio

1.27

1.32

1.53

1.67

 

Return of Equity

21.41%

21.77%

19.81%

23.11%

Return on Capital Employed

-

16.00%

14.00%

18.00%

OPM

36.42%

30.81%

27.66%

31.80%

NPM

21.91%

19.17%

15.79%

17.19%

 

CFO/EBITDA

42.09%

100.42%

72.00%

52.15%

Free Cash Flow

-0.62

20.06

0.39

-21.58

Free Cash Flow/Debt

-0.01

0.65

0.01

-0.81

 

How to Apply for this IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your Client ID

  3. Enter the OTP received in your register mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

    You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”

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