On Day 1, the issue was subscribed 27% of the 56.32 lakh shares on offer, largely driven by Qualified Institutional Buyers (QIBs), who subscribed to 87% of their allocated portion.
The Rs 1,087 crore IPO is entirely an offer for sale (OFS) of up to 80,43,300 equity shares by existing shareholders, meaning the company will not receive any proceeds from the issue.
The price band has been set at Rs 1,287 to Rs 1,352 per share, with a market lot of 11 shares. The issue will close on March 6, and the stock is proposed to be listed on the BSE and NSE. At the upper end of the price band, the company is valued at an estimated market capitalisation of around Rs 5,971 crore.
The allocation structure reserves 50% of the issue for Qualified Institutional Buyers, 15% for Non-Institutional Investors and 35% for Retail Investors.
Sedemac Mechatronics IPO GMP today:
In the grey market, Sedemac Mechatronics shares are currently trading at a premium of about Rs 60, or 4.44%, over the upper price band of Rs 1,352. Based on this premium, the estimated listing price is around Rs 1,412 per share.
The grey market premium (GMP) reflects the price at which shares are traded unofficially before listing. It is an informal indicator of investor sentiment and demand and does not guarantee the actual listing price of the stock.
Sedemac Mechatronics IPO subscription details:
On Day 1, the IPO was subscribed 27% overall, according to data from the BSE.
The Retail Individual Investors (RIIs) category was subscribed 3% against the 28.12 lakh shares allocated for this segment.
The Non-Institutional Investors (NIIs) portion saw a 1% subscription against the 12.05 lakh shares on offer.
Meanwhile, the Qualified Institutional Buyers (QIBs) segment received the strongest demand, with 87% subscription of the 16.07 lakh shares reserved for institutional investors.
About Sedemac Mechatronics
Sedemac Mechatronics is a technology firm based in Pune that develops and manufactures control-intensive electronic control units (ECUs) for mobility and industrial applications. Its product range includes integrated starter generator (ISG) ECUs, electronic fuel injection (EFI) ECUs, EV motor controllers and genset control units.
The company has a strong presence in the two- and three-wheeler segment and generates a significant portion of its revenue from a limited number of OEM customers.
Financially, the company has recorded robust growth. Revenue from operations increased from Rs 423 crore in FY23 to Rs 658 crore in FY25, while profit after tax rose to Rs 47 crore in FY25 from Rs 6 crore in FY24. EBITDA margins also improved to 18.4% in FY25 compared with 11.2% in FY23. For the nine months ended FY26, the company reported revenue of Rs 771 crore and PAT of Rs 71 crore.
However, the IPO is priced at relatively high valuations. Based on the pre-issue capital and the upper end of the price band, the stock is valued at a trailing P/E of about 126.9 times FY25 earnings.
Should you subscribe?
Brokerage views on the IPO are mixed. SBI Securities has recommended subscribing to the issue with a long-term perspective, citing Sedemac’s leadership in control-intensive ECU technology, strong market share in ISG ECUs and genset controllers, and innovation-driven growth supported by in-house R&D.
The brokerage highlighted that revenue, EBITDA and PAT have grown at annualised rates of 34%, 64% and 123%, respectively, between FY23 and FY26E. It also noted that the company’s specialised products and OEM approvals create significant entry barriers. However, it cautioned that strong listing or short-term gains may be limited.
On the other hand, Swastika Investmart has given the IPO an “Avoid” rating. The brokerage noted that although the rebound in profitability in FY25 is positive, it follows a weak FY24 and needs to demonstrate sustained consistency. It also emphasised that the valuation, at around 127 times trailing earnings, offers limited margin of safety.
Swastika also flagged risks such as high customer concentration, with a large share of revenue dependent on a few OEMs, and significant exposure to the mobility segment, which contributes most of the company’s revenue.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times.)