eMudhra Limited IPO

eMudhra Limited

Issue Open

May 20, 2022

Price Band

₹ 243 to ₹ 256 per equity share

Issue Size

₹ 412.79 crore

Credit of Shares to Demat


Issue Close

May 24, 2022

Bid Lot


Listing Exchange


Cut off time for UPI Mandate Confirmation


Issue Type

Book Built Issue IPO

Minimum Order Quantity


Allotment Details


Face Value

Rs 5 per equity share

Listing On




About the company:

Issue Details:

·         Dates: May 20, 2022 to May 24, 2022

·         Price Band: Rs. 243 to Rs. 256 per share

·         Minimum Lot: 58 shares

·         Minimum Application Amount at the Upper Band: Rs. 14,848

Objects of the Issue

The IPO has an issue size of Rs 412.79 crores which comprises of Rs 161 crore of fresh issue. The proceeds of the fresh issue are expected to be utilized towards:

·         Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Company.

·         Funding working capital requirements of the Company.

·         Purchase of equipments and funding of other related costs for data centers proposed to be set-up in India and overseas locations

·         Funding of expenditure relating to product development

·         Investment in eMudhra INC for augmenting its business development, sales, marketing and other related costs for future growth

·         General corporate purposes.

Company Overview

eMudhra is the largest licensed Certifying Authority (“Certifying Authority” or “CA”) in India with a market share of 37.9% in the digital signature certificates market space in Financial Year 2021.

The company is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organisations functioning in various industries. As part their Digital Trust Services, they issue a range of certificates including individual/organizational certificates, SSL/TLS certificates and device certificates (used in IoT use cases) to build a digital trust backbone.

eMudhra has a strong digital signature certificate expertise and is the only Indian company to be directly recognized by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple and Adobe allowing it to sell digital identities to individual/organization and issue SSL/TLS certificates for website authentication globally. Furthermore, the company works closely with large government and banking customers like the 20+ public and private sector banks and state governments.

Its competitive advantage stems from its established presence and diverse product portfolio in the area of digital security and paperless transformation. eMudhra have been consistently designing and developing diverse products at competitive price points under its business verticals which has contributed towards our growth and expansion of our customer base in recent years. Its 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, as of December 31, 2021, they cater to 143,406 retail customers and 626 enterprises.

As of December 31, 2021, their Enterprise Solutions are used by 10 out of top 10 banks, 6 of top 10 automotive companies and 19 out of top 20 companies amongst the top 500 ranked companies in India by Economic Times in Financial Year 2020.

Key Strengths

Largest licensed Certifying Authority in India: eMudhra is the largest licensed Certifying Authority in India with a market share of 37.9% in the digital signature certificate market space in Financial Year 2021 having grown from 36.5% in Financial Year 2020. They are one of the largest players in the Indian Digital Trust Services market with a market share of 17.8% and they enjoy 19.0% market share in the Digital Transformation Solutions market in India for Financial Year 2021.

One-stop-shop solution provider: With their Digital Trust Services and Enterprise Solutions, they provide an integrated and complete product portfolio in secure digital transformation to enterprises, private customers, banks, financial institutions and public customers such as government and administrative bodies, etc.

Technology certifications, accreditations and membership in international bodies: eMudhra is a registered certifying authority with the Controller of Certifying Authorities and are the only Indian company to be admitted as a member of European Cloud Signature Consortium as well as Certifying Authority/ Browser Forum, a global forum that governs the use of SSL/TLS certificates. They have obtained a variety of accreditations, security/compliance certifications. They are the only Indian company to be accredited by Webtrust, thereby making their digital signature certificates directly recognized by browsers across the world allowing them to issue digital signature certificates in many countries.

Technology backed infrastructure to support quality and security of services and solutions: Company’s Digital Trust Services and Enterprise Solutions are backed by technological infrastructure including their data centres located in India and proposed to be set up in overseas locations, with appropriate virtualization, computing and storage, physical and logical isolation, network firewalls and disaster recovery site to support high availability, uptime and redundancy. The digital signature certificates issued by them are based on asymmetric cryptographic key pairs (private and public key).

Key Risks

Competition Risk: The industry is competitive and the company faces significant competition from both established and new companies offering trust services, digital security and paperless transformation solutions, which may have a negative effect on its ability to add new customers, retain existing customers and grow its business. The inability to compete effectively will adversely affect our business, results of operations, financial condition and cash flows.

Success of the IPO: One of the objects of the Offer is to invest in eMudhra INC one of their Subsidiaries, incorporated in United States of America to augment its business development. Further, the company is raising Rs 463.64 million for purchase of equipments and funding of other related costs for data centers proposed to be set up in India and overseas locations. The success of these investments is contingent which may hamper the investor returns.

Regulatory Risk: Even though the company has received Certifying Authority in India and many other countries, this business has high level of regulatory risk as change in rules and regulations may hamper the operations of the company leading to steep fall in the revenues and profits.







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The company caters to a high growth niche segment and has significant market share in the domestic markets. Along with this, the expansion in the global markets is expected to add growth and reduce the business risk. eMudhra has posted a stellar performance in FY21 and has continued the same trend in H1FY22 with robust growth in EBITDA and PAT margins. Based on the current valuations, the company’s P/E stands at 44x which appears reasonable in the absence of listed peers. Further, the total addressable markets of various segments the company operates in are expected to grow in high teens over the next 5 years. Considering the above factors, albeit the increasing competition, the long-term outlook for the company seems quite promising given its position in the industry and its impressive operational growth. Furthermore, given the current short-term macro headwinds in the stock market, listing gains seem unlikely. Hence, we recommend the investors to 'Subscribe for Long Term'.








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