Seshaasai Technologies IPO Subscription Overview
As of the end of Day 1, the Seshaasai Technologies IPO saw an overall subscription of 99%, indicating a strong start driven primarily by Retail and Non-Institutional Investors (NIIs).
Retail Individual Investors (RIIs) subscribed 1.15 times the allotted 69.17 lakh shares, reflecting healthy interest from small investors.
Non-Institutional Investors (NIIs) showed even stronger demand, subscribing 1.86 times the allocated 29.64 lakh shares.
Qualified Institutional Buyers (QIBs), however, remained cautious, subscribing to just 1% of the 38.29 lakh shares reserved for them.
With the IPO entering its second day of bidding, market watchers will be keeping a close eye on QIB participation to assess the institutional confidence in the offering.
Seshaasai Technologies GMP Today
Seshaasai Technologies’ IPO is priced in the range of Rs 402 to Rs 423 per share. The latest grey market premium (GMP) stands at Rs 75, suggesting an estimated listing price of Rs 498. This indicates an upside potential of approximately 18% over the IPO’s upper price band.
Investors can bid for a minimum lot of 35 shares, translating to an application amount of Rs 14,805 at the top end of the price range.
The offer comprises a fresh issue of Rs 480 crore and an offer-for-sale (OFS) of Rs 333 crore. At the upper end of the band, the post-issue market capitalization of Seshaasai Technologies is expected to reach Rs 6,844 crore.
Use of Proceeds
The funds raised from the fresh issue will be utilized to enhance the metal card manufacturing capacity at the company’s Navi Mumbai and Bengaluru facilities. Additionally, Rs 300 crore will be allocated toward the prepayment of borrowings, with the remaining proceeds earmarked for general corporate purposes.
Business Profile and Market Position
Seshaasai Technologies ranks among India’s top two payment card manufacturers, holding a 31.9% market share in FY25, up from 25% in FY23. The company caters to over 700 clients, including major names such as HDFC Bank, ICICI Bank, SBI, HDFC Life, and PhonePe. The BFSI sector contributes approximately 84% of its revenue for FY25.
Its product portfolio includes debit and credit cards, biometric and metal cards, dynamic CVV cards, and payment-on-the-go devices. Beyond payment solutions, the company has also expanded into RFID and IoT technologies, serving sectors such as retail, logistics, automotive, and healthcare.
Seshaasai operates 24 manufacturing units across seven locations, supported by two dedicated R&D centers, underscoring its focus on innovation and scale.
Financial Performance and Valuation
Seshaasai Technologies has delivered strong financial performance over the last three years. Its revenue rose from Rs 1,146 crore in FY23 to Rs 1,463 crore in FY25, reflecting a 13% CAGR. Net profit more than doubled during the same period, increasing from Rs 108 crore to Rs 222 crore, registering a 43% CAGR.
The company also saw a significant improvement in profitability, with EBITDA margins expanding from 17.4% in FY23 to 24.6% in FY25. Key return metrics remain healthy, with Return on Equity (ROE) at 34.8% and Return on Capital Employed (ROCE) at 31.9%. Additionally, the debt-to-equity ratio improved to 0.55, indicating a stronger balance sheet position.
Valuation and Outlook
At the upper end of the price band, Seshaasai Technologies’ IPO is priced at a price-to-earnings (P/E) ratio of 28x based on FY25 earnings, and a price-to-book value (P/BV) of 6.1x.
Analysts note the company’s market leadership, high client retention, and strong growth potential in both the payments and IoT segments as key strengths.
Brokerage firm SMIFS has given a “Subscribe” rating, citing Seshaasai’s dominant market position, diversified and tech-driven product offerings, solid financial performance, and plans for global expansion.
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