The largest licensed except certifying authority in India, eMudhra Limited, debuted on the stock exchanges today. Initially priced between Rs 243 and Rs 256 per share, the company's shares started trading on the NSE at Rs 270, a 5.5% increase. The stock's BSE IPO price was Rs 271 per share. Investors fully subscribed to the Rs 412.79 crore initial public offering (IPO) earlier this month, except licensed retail investors. On its market debut, the business had a market capitalization of Rs 2,115.76 crore. In India, eMudhra is a certifying authority (CA) authorized to issue digital signature certificates by the controller of certifying authorities (CCA).
Due to competitive bidding from qualified institutional buyers, whose quota garnered 4.05 times offers, the issue was overall subscribed 2.27 times. The segments for HNI and retailers received 1.28 and 2.61 times as much interest, respectively. The market share for digital signature certificates held by eMudhra, the largest licensed certifying authority in India, increased from 36.5 percent in FY20 to 37.9 percent in FY20.
It is a one-stop shop for players in secure digital transformation and offers a broad range of services and solutions, including identification, authentication, and signing solutions in addition to certificate issuing as a certifying authority. Information Logic, Tata Consultancy Services, Mashreq Bank, Baud Telecom, Cholamandalam MS General Insurance Company, and Bharti AXA Life Insurance Company are some of its clients.
The money raised from the IPO will be used by eMudhra to pay off debt, cover working capital needs, purchase data center equipment, invest in business expansion, sales, and marketing, as well as other growth-related expenses.
What Should Investors Do Now?
"eMudhra Ltd. has launched at Rs. 271.45 or 6% over its issue price," stated Santosh Meena, Head of Research at Swastika Investment Ltd. Current market conditions, promising future developments, and generally favorablelicensedorganization reactions from individual investors all contributed to the company's tepid but positive debut. The largest licenced Certifying Authority in India is eMudhra, which is also the only organization in India to be officially acknowledged by world-famous makers of browsers and word processing software including Microsoft, Mozilla, Apple, and Adobe. Additionally, eMudhra is the only business in India that has been approved by Web trustcanrecognize, which enables them to issue digital signature certificates in numerous nations because browsers all over the world can directly recognize their certificates.
"In the medium to long term, the company will experience significant growth due to the increased demand for data privacy, data protection, and digital transformation. However, the industry's level of competition, the company's expansion into uncharted business areas and geographic regions, as well as the issue's high pricing, make it appropriate for long-term investors after the listing. The stop loss for those who requested listing gains is Rs. 260," Meena continued.