There was a new listing today and it was a decent one - eMudhra. As against the IPO price of Rs.256, the stock got listed on the BSE at Rs.271, a premium of 6%. It did go down to the low point at Rs.256.40, just about keeping its head above water.
The IPO had evoked a good response, subscribing 2.72x, with QIBs portion taking the biggest share at 4.05x, HNIs at 1.28x but retail investors really went for it at 2.61x.
The company is in the business of providing Digital Trust Services and Enterprise Solutions to individuals and organizations functioning in various industries.
In our IPO Analysis, we had found the IPO to be fully priced, concluding that eMudhra’s post-money m cap of Rs. 2,000 cr for Rs. 50 cr FY23E PAT translates into PE multiple of 40x, which does not leave much upside for incoming investors. Our advice was “company may be tracked post-listing for a better entry price.”