Emudhra Share Price: eMudhra lists at 5.5% premium to IPO price, gives up gains at close

Shares of digital signature certificate provider eMudhra listed at ₹270, about 5.5% above its IPO price of ₹256 apiece. After rising as much as 9% to ₹279 earlier in the day, the stock gave up early gains and ended at ₹258.85, which is 1.1% over the issue price.

The initial public offering of eMudhra was subscribed 2.72 times. The ₹412.79-crore public issue was priced in a band of ₹243 to ₹256 per share.

The issue got a strong response from qualified institutional buyers. While the QIB category was subscribed 4 times, the high net worth individuals’ and retail investors’ portions were subscribed 1.3 times and 2.6 times respectively.

The company had reported a profit of ₹25.36 crore in FY21 as against a loss of ₹18.41 crore in the previous year. The revenue in the financial year rose to ₹132.45 crore from ₹116.8 crore a year ago. In the nine months ended December 2021, the company clocked a profit of ₹30.34 crore and revenue of ₹138.30 crore.

“Despite being just 12 years in the market, eMudhra has better brand recognition and stronger channel partner relationship,” said brokerage firm Hem Securities in a pre-IPO note. The brokerage had recommended subscribing to the IPO citing decent financial performance and a unique business model.