eMudhra Limited IPO

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i. eMudhra Limited is engaged in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organizations functioning in various industries. As part of the Digital Trust Services, the company 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.

ii. With more than 50 million digital signature certificates issued since inception, the Company caters to all kind of subscribers who use digital signature certificates for income tax return filing, filings with the Ministry of Corporate Affairs (Registrar of Companies), tenders, foreign trade, banking, railways and many other needs

iii. The Company works closely with large government and banking customers like the 20+ public and private sector banks and state governments. They have been identified and ranked amongst the ‘20 Most Promising Tech Solution Providers for Government & Public Sector 2019’ by CIO Review India.

iv. Competitive Strengths:

  1. Largest licensed Certifying Authority in India.
  2. The company is a one-stop-shop solution provider in secure digital transformation and is well-positioned to capture the favorable industry dynamics in India and globally.
  3. Technology certifications, accreditations, and membership in international bodies.
  4. Technology-backed infrastructure to support the quality and security of services and solutions.
  5. Diverse, longstanding, and growing customer base.
  6. Partnerships with leading Indian and global channel partners and enterprise solution partners.
  7. The experienced promoter, board of directors, and senior management team.

Objects of the eMudhra Limited IPO:

The Offer comprises the Fresh Issue and an Offer for Sale.

The Net Proceeds from the Fresh Issue are proposed to be utilized by the  Company for the following objects: i. Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Company ii. Funding working capital requirements of the Company iii. Purchase of equipment and funding of other related costs for data centers proposed to be set up in India and overseas locations. iv. Funding of expenditure relating to product development v. Investment in eMudhra INC for augmenting its business development, sales, marketing and other related costs for future growth vi. General corporate purposes

eMudhra Limited IPO Details:

Open Date: May 20 2022
Close Date: May 24 2022
Total Shares: 16,124,609
Face Value: ₹ 5 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 412.79 Cr.
Lot Size: 58 Shares
Issue Price: ₹ 243-256 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jun 01 2022

Promoters And Management:

i. Venkatraman Srinivasan is the Executive Chairman of the Company and has been the Director of the Company since incorporation in 2008. He has a bachelor’s degree of science in mathematics from the University of Madras. He is an associate member of the Institute of Chartered Accountants of India and Institute of Cost and Works Accountants of India. He is a qualified company secretary from the Institute of Company Secretaries of India. He participated in the Executive Development Programme at Kellogg Graduate School of Management. He is a board member of European Cloud Signature Consortium, Chairman of Asia PKI Consortium and was the Chairman of India PKI Forum. He has over 34 years of experience in the information technology industry and has served as the managing director and chief executive office of ICICI Infotech Limited. He is the author of the book titled “New Age Management Philosophy from Ancient Indian Wisdom” which has been fore worded by K.V. Kamath, ICICI Bank, May 31, 2006. ii. Venu Madhava is a Whole-time Director of the Company, and the Senior Vice -President, Legal. He holds a bachelor’s degree in commerce and a bachelor’s degree in law, both from Kwempu University. He has over 13 years of experience and has worked as as Manager - Legal at Adecco India. iii. The Offer comprises the Fresh Issue and an Offer for Sale. Nandlal Laxminarayan Sarda is an Independent Director of the Company. He holds a master’s degree in technology in electrical engineering from Indian Institute of Technology, Bombay. He has doctor of philosophy degree from Indian Institute of Technology, Bombay. He has previously served as the dean of academic programmes, IIT Bombay for almost two years in which his role he coordinated with the Society for Innovation and Entrepreneurship (SINE). He is presently serving on the board of Cybertech Systems and Software Limited.

Financials of eMudhra Limited IPO:

1. Balance Sheet
Particuars(Cr) FY22 (Dec 21) FY21 FY20 FY19
Long-term Assets 158.62 146.64 105.26 84.51
PPE 66.19 65.71 15.00 15.04
Right-of-Use Assets 11.93 13.37
Capital work-in-progress 21.87 4.49 40.46 21.76
Intangible 48.85 40.22 42.29 46.56
Goodwill 2.08 5.29 5.18
Investments 13.78 0.05 0.15
Other long-term Assets 8.42 3.74 2.26 1.00
Short-Term Assets 95.48 45.27 53.45 34.99
Cash & Cash Equivalents 13.98 7.71 9.18 2.33
Inventory 2.15 0.71 1.46 0.28
Investments 0.06 0.10
Trade-receivables 53.24 14.91 23.39 21.33
Loan 3.07 3.06 3.10 3.12
Other Assets 23.41 18.81 16.20 7.92
Total Assets 254.11 191.91 158.71 119.51
Total Equity 141.51 116.61 93.07 75.64
Equity Capital 35.09 35.09 35.09 35.09
Other Equity 105.40 72.26 57.05 40.55
Non-controlling interests 1.02 9.25 0.93
Long-term Liabilites 37.42 40.97 30.77 22.86
Borrowings 22.03 22.09 26.23 18.83
Lease Liabilities 11.29 12.78
Deferred tax Liabilities 0.03 0.36 0.75 0.31
Provision 2.28 3.26 2.16 1.87
Other Long-term Liablities 0.60 1.46 1.61 1.84
Short-Term Liabilities 110.40 84.40 75.10 66.80
Borrowings 22.49 8.71 12.50 7.69
Lease Liabilities 2.32 2.63
Dues to MSMEs 0.43 1.92 0.23 0.59
Dues to Creditors other than MSMEs 15.54 1.56 7.55 4.03
Other Financial Liabilities 11.74 6.61 4.45 2.41
Provisions 18.49 9.26 6.10 3.25
Other Short-term Liabilites 4.12 3.59 4.01 3.02
Total Equity and Liabilities 254.11 191.91 158.71 119.51
2. Profit & Loss Statement
Particuars(Cr) FY22(Dec 21) FY21 FY20 FY19
Revenue
Revenue 137.24 131.59 116.45 101.58
% Growth 4.29% 13.00% 14.64%
Other Income 1.06 0.86 0.34 0.09
Total Revenue 138.30 132.45 116.79 101.68
% Growth 4.42% 13.41% 14.86%
Expenses 101.56 101.27 93.78 78.13
Cost 33.96 31.60 37.76 31.50
% of Sales 24.74% 24.01% 32.43% 31.01%
Gross profit 104 101 79 70
% Gross Margin 75.44% 76.14% 67.67% 69.02%
Employees Expenses 34.90 41.71 29.21 25.85
% of Revenue 25.23% 31.49% 25.01% 25.42%
Other Expenses 19.07 18.33 17.52 12.00
% of Revenue 13.79% 13.84% 15.00% 11.80%
Operating Profit 50.37 40.81 32.30 32.33
Operating Profit Margins 36.42% 30.81% 27.66% 31.80%
Depreciation 10.18 8.76 8.60 8.50
% of PPE 15.38% 13.33% 57.33% 56.52%
Finance Cost 3.49 0.84 0.66 0.25
Exceptional items 1.89
PBT 36.70 31.21 23.04 21.69
Tax 6.40 5.82 4.60 4.21
% of Tax 17.44% 18.65% 19.97% 19.41%
PAT 30.30 25.39 18.44 17.48
Net Profit Margins 21.91% 19.17% 15.79% 17.19%
EPS (in Rs.) 4.36 2.49 2.37 2.48
3. Cash Flow Statement
Cash-Flow from Operations (Cr) FY22(Dec 21) FY21 FY20 FY19
PBT 36.74 31.18 23.01 21.64
Depreciation 10.11 8.76 8.60 8.50
Interest paid on lease liab 1.26 0.23
Gain on redemption of shares -0.01 -0.29
Int Income on Bank Deposits -0.22 -0.67
Working Capital Changes -26 5 -4 -10
Change in other current assets and non-current assests -5.43 -3.02 -9.89 -2.18
Change in Loans -0.01 0.04 0.02 0.63
Change in Trade Receivables -38.39 8.48 -2.06 -15.23
Change in Inventory -1.43 0.75 -1.18 0.05
Change in other current financial liability 5.12 2.16 2.04 0.43
Change in other current and non-current liability -0.34 -0.56 0.76 2.48
Change in non-current and current provision 1.99 1.87 3.14 0.97
Change in tarde payble 12.48 -4.28 3.16 2.61
Cash generated from operations 21.88 44.93 27.31 19.90
Taxes Paid 0.69 -3.98 -4.07 -3.05
Net cash flow from operating activities 21.19 40.95 23.24 16.85
Cash-Flow from Investment FY21 (Dec 21) FY21 FY20 FY19
Purchase of PPE -16.53 -18.10 -19.71 -18.57
Purchase of intangible assets -17.88 -2.79 -3.14 -19.86
Proceeds from sale of PPE
Proceeds from sale of Intangible assets 0.30 6.31
Goodwill on consolidation 3.20 -0.10 -5.18
Capital reserve on consolidation -0.40
Public issue related expenses -4.97
Movement in right to use assets -13.86
Gain on redemption of shares 0.01 0.29
Investments in mutual funds 13.84 13.69
Movement in minority interest -7.95 0.42 -0.83
Interest received 0.19 0.75 0.28 0.09
Net cash from investing activities -30.10 -19.68 -28.69 -32.03
Cash-Flow from Financing FY22 (Dec 21) FY21 FY20 FY19
Proceeds from short term borrowing 13.78 -3.78 4.80 2.82
Proceeds from long term borrowing 0.11 -4.14 7.39 7.92
Movement of OCI 0.80 -0.33 0.40 -0.20
Proceeds from security premium -0.06 0.06
Foregin exchange movement on consolidation 2.04 -1.60 0.24 0.50
Payment of preference dividend -0.27 -0.65 -0.60 -0.58
Payment towards principal portion of lease liability -1.80 15.42
Interest paid on lease liabilities -1.25 -0.23
Net cash from Financing activities 13.35 4.69 12.29 10.46
4. Ratio Analysis (i) Balance Sheet Ratio Analysis :
Particulars FY22 (Dec,21) FY21 FY20 FY19
Debt/Equity 0.21 0.23 0.31 0.26
Debtor Days 142 41 73 77
Current Ratio 1.27 1.32 1.53 1.67
(ii) P&L Ratio Analysis :
Particulars FY22 (Dec,21) FY21 FY20 FY19
Return of Equity 21.41% 21.77% 19.81% 23.11%
Return on Capital Employed - 16.00% 14.00% 18.00%
OPM 36.42% 30.81% 27.66% 31.80%
NPM 21.91% 19.17% 15.79% 17.19%
(iii) Cash Flow Ratio Analysis :
Particulars FY22 (Dec,21) FY21 FY20 FY19
CFO/EBITDA 42.09% 100.42% 72.00% 52.15%
Free Cash Flow -0.62 20.06 0.39 -21.58
Free Cash Flow/Debt -0.01 0.65 0.01 -0.81
5. Revenue Profile
FY21 FY20 FY19
in Rs.Crores % of total in Rs.Crores % of total in Rs.Crores % of total
International 25.48 19.36 14.6 12.54 10.2 10.04
Domestic 106.11 80.64 101.85 87.46 91.38 89.96
Total 131.59 100 116.45 100 101.58 100
  6. Shareholding Pattern
Category No.of Shares % of holding
Promoters and Promoter Group 5,68,43,956 79.19%
Public 88,81,552 12.37%
Share held by employee trusts 60,57,801 8.44%
Total 7,17,83,309 100.00%

Comparison With Peers:

As per DRHP, there is no peer in the listed market.

Recommendation on eMudhra Limited IPO:

to be updated shortly

Registrar of eMudhra Limited IPO:

  1. Link Intime India Private Limited

Company Address:

eMudhra Limited Sai Arcade, 3rd Floor, No. 56 Outer Ring Road, Devarabeesanahalli, Bengaluru 560103, Phone: 080-4227 5300 Email: companysecretary@emudhra.com Website: https://www.emudhra.com/index.jsp

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