Digital signature certificate provider eMudhra Ltd on Thursday said it has raised Rs 124 crore from anchor investors ahead of its initial public offering which opens for subscription on Friday.
The company has allocated 48,37,336 equity shares to anchor investors at Rs 256 per share, aggregating the transaction size to Rs 123.83 crore, according to a circular uploaded on BSE website.
Aditya Birla Sun Life Mutual Fund (MF), Motilal Oswal MF, Nippon India MF, SBI MF, Baring Private Equity India, Hornbill Orchid India Fund, Pinebridge India Equity Fund and Abakkus Growth Fund are among the investors that participated in the anchor book.
The company has cut the size of the fresh issue from Rs 200 crore to Rs 161 crore. Besides, there will be an Offer-For-Sale (OFS) of 98.35 lakh shares by promoters and existing shareholders.
As a part of the OFS, promoters -- Venkatraman Srinivasan and Taarav Pte Ltd -- will offload 32.89 lakh equity and 45.16 lakh equity shares respectively.
In addition, Kaushik Srinivasan will divest 5.1 lakh equity shares, Lakshmi Kaushik 5.04 lakh, Arvind Srinivasan, 8.81 lakh and Aishwarya Arvind 1.33 lakh equity shares.
The Initial Public Offering (IPO), with a price band of Rs 243-256 a share, will open for public on May 20 and conclude on May 24.
At the upper end of the price band, the IPO is expected to fetch Rs 412.79 crore.
Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centre costs proposed to be set up in India and overseas locations, develop products, investment in eMudhra INC and for general corporate purposes.
Half of the issue has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
IIFL Securities, Yes Securities and Indorient Financial Services are the book running lead managers for the issue.
eMudhra is the largest licensed certifying authority in India with a market share of 37.9 per cent in the digital signature certificates market space in financial year 2021 having grown from 36.5 per cent in FY20.
The company has been engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.
It is a 'one stop shop' player in secure digital transformation and provides a wide spectrum of services and solutions from issuance of certificates as a certifying authority to offering identity, authentication and signing solution.
Some of its customers include Infosys, Tata Consultancy Services, Mashreq Bank, Baud Telecom Company, Cholamandalam MS General Insurance Company and Bharti AXA Life Insurance Company.