eMudhra Ltd IPO Note




IPO Opening Date

May 20, 2022

IPO Closing Date

May 24, 2022

Issue Type

Book Built Issue IPO

Face Value

₹5 per equity share

IPO Price

₹243 to ₹256 per share

Market Lot


Min & Max Order Quantity

58 & 754 Shares

Min & Max application amount

₹ 14,848 & ₹ 193,024

Listing At


Issue Size

[1,61,24,450] shares of ₹5 (aggregating up to ₹412.79 Cr)

Fresh Issue

[62,89,056] shares of ₹5 (aggregating up to ₹161.00 Cr)

Offer for Sale

(9,835,394) shares of ₹5

(aggregating up to ₹251.79 Cr)

Basis of Allotment Date

May 27, 2022

Initiation of Refunds

May 30, 2022

Credit of Shares to Demat Account

May 31, 2022

IPO Listing Date

June 1, 2022


Venkatraman Srinivasan and Taarav Pte. Limited are the company promoters.

Retail portion, QIB, NII(HNI)

35%, 50%, 15%


Link Intime India Private Limited


Company Profile

 eMudhra Limited is India's largest licensed Certifying Authority ("CA") with a market share of 37.9% in the digital signature certificates market. The company's business is divided into two verticals Digital Trust Services and En-terprise Solutions. Company is engaged in the business of providing services like individual/organizational certificates, digital signature certificates, SSL/TLS certificates and device certificates, a portfolio of digital security and paperless transformation solutions, multi-­factor authentication, etc.


Objects of the issue

 The Offer comprises of the Fresh Issue and an Offer for Sale by the Selling Shareholders

 1)  The proceeds from the issue will be utilised for repayment in full or in part of all or certain borrowings,

 2)  Working capital requirements

 3)  Purchase of equipment and funding of other related costs for data centres proposed to be set up in India and overseas locations.

 4)  Funding of expenditure relating to product development.

 5)  Investment in eMudhra INC to augment its business development, sales, marketing and other related costs for future growth.


Financial Details


Particulars (in crores) Dec-­-­ 21 Mar-­-­ 21 Mar-­-­ 20 Mar-­-­ 19
Total Income 138.3 132.454 116.799 101.68
Total income growth 4.41% 13.40% 14.87% -­-­
Total Expenses 101.562 101.274 93.781 78.134
EBIT 36.738 31.18 23.018 23.546
EBIT Growth 17.83% 35.46% -­-­ 2.24% -­-­
PAT 30.34 25.359 18.416 17.436
PAT Growth 19.64% 37.70% 5.62% -­-­
Basic EPS 4.36 2.49 2.37 2.48
Net debt/Equity 0.22 0.23 0.31 0.26
ROCE(%) 41.50% 30.50% 28.10% 32.60%
RONW(%) 21.79% 16.26% 18.07% 23.05%
Total Assets 254.111 191.91 158.71 119.51
Net Asset Value(Rs) 20.02 15.3 13.13 10.78


Competitive Strengths:

  • One stop shop solution provider in secure digital transformation. 

  • Has issued over 5 crore digital signature certificates through its network of 91,259 channel partners.

  • Has long standing relationships with marquee customers including TCS, Infosys, Hindalco industries and Bharti AXA Life Insurance

  • The only Indian company to be admitted as a member of the European Cloud Signature Consortium as well as Certifying Authority/ Browser Forum.

  • Has received Webtrust Accreditation. This means its digital signature certificates are directly recognized by browsers across the world.

  • The Customer Retention rate was 87.5% and 96.15% for Enterprise and Digital Trust Services in FY21

  • Emudhra remains the largest CA in India with 37.9% market share in the Digital Signature Certificates market space in FY21


Geographical Presence

 Emudhra Limited provides its solutions and services in overseas regions, in the America, Europe, Middle East and Africa and Asia Pacific. They are also actively evaluating opportunities in these markets. It provides Digital Trust Services in the capacity of a licensed Certifying Authority in India and internationally through its Webtrust accreditation. Digital signature certificates provide cryptographic digital identities to individuals, organizations, websites and devices controlled over IoT and ensure authenticity of transactions emanating from the above said entities through cryptographic validation. These digital certificates are used by large enterprises and small and medium enterprises across all industries all kind of subscribers who use digital signature certificates for income tax return filing.


Key Risk Factors

  • Company intends to expand its business operations to geographical areas in which they have limited operating history and it cannot assure that their expansion plans will be profitable or that expansion will not adversely affect its business, result of operations and financial conditions


  • Company is dependent on channel partner for a significant portion of its revenues and a loss of such partner could adversely affect its business, financial conditions and result of operations.


  • Company may be accused of infringing or misappropriating intellectual property rights or confidential know how of third parties.


  • It uses open source software in their products, which could subject to litigation or other action.


  • If their third party service providers and key vendors are not able to or do not fulfil their service obligations, its operations could be disrupted and their operating results could be harmed.


  • Any international expansion efforts may expose company to complex management, legal, tax and economic risks, which could adversely affect its business, financial conditions, cash flows and results of operations.


  • Company may not be able to scale its business quickly enough to meet its customers growing needs and if they aren't able to grow efficiently, its operating results could be harmed.



On the financial performance front, revenues from operations grew at a CAGR of 13.82 per cent from financial years 2019 to 2021. Its EBITDA for December 31, 2021 and for Financial Years 2021, 2020 and 2019 were Rs 503.56 million, Rs 407.87 million, Rs 322.88 million and Rs 323.10 million, respectively, and grew at a CAGR of 12.36 per cent over such period. Its profit after tax grew at a CAGR of 20.60 per cent over such period.


E-Sign is one of the most important digital and paperless solutions. The Indian government has been laying strong focus on e-sign which is part of the digital India Campaign. Company’s retail customers grew from 58,872 as of March 31, 2019 to 115, 905 as of March 31, 2021. Its enterprise customers grew from 249 as of March 31, 2019 to 518 as of March 31, 2021. Further, the revenue contribution of the digital products offered under its enterprise solution vertical has consistently grown from Rs 361.78 million in the Financial Year 2019 to Rs 643.43 million in the FY 2021. Company appears to be in a strong market position which is reflected by its healthy market share and steady financials Hence, we recommend our clients to Subscribe to the issue for the long term.


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