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Shares of eMudhra Ltd made a positive debut on the bourses on Wednesday, listing at a premium against its issue price of ₹256. However, it surrendered all its listing gains at closing.
eMudhra listed at ₹271 on the BSE, a 5.85 per cent premium over the issue price. It climbed to a high of ₹279 post listing. However, it surrendered all gains to close at ₹258.85, down ₹2.85 or 1.11 per cent from the issue price. It recorded an intraday low of ₹255.40.
The stock listed at ₹270 on the NSE, up ₹14 or 5.47 per cent from the issue price before closing at ₹256.
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Should you subscribe to eMudhra IPO?
The company is the largest digital certifying authorityies in India with a market share of 37.9 per cent in FY21The company has fixed the initial public offering (IPO) price at ₹256, and the upper end of the price band at ₹243-256.
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.
According to Santosh Meena, Head of Research, Swastika Investmart Ltd, “The company’s tepid yet positive listing can be attributed to current market conditions, good prospects, and reasonably good responses from retail investors. eMudhra is India’s largest licensed Certifying Authority and the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe.”
“Further, eMudhra is the only Indian company to be accredited to Webtrust which makes their digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries. The growing demand for data privacy, data protection, and digital transformation will help the company grow substantially in the medium to long term. However, the competitive nature of the industry, the company entering into uncharted geographies & areas of business and the rich pricing of the issue make it suitable for long-term investors post listing,” as per Meena.
The ₹412.80-crore IPO of eMudhra was subscribed 2.72 times. Ahead of the issue, the company garnered ₹123.83 crore from the anchor investors.
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