Fresh issue of Rs 480 crore & OFS of Rs 333.07 crore: Shares of Seshaasai Technologies Ltd get listed on the stock exchange; Details inside!

On Tuesday, shares of Seshaasai Technologies Limited marked their debut on stock exchanges, that is BSE and the NSE. On BSE, the stock is listed at Rs 436.95 per share and on NSE, the stock is listed at Rs 437.45 per share. The IPO was oversubscribed 69.64 times overall. The QIB portion saw the highest subscription at 189.49 times, followed by retail investors at 9.46 times and Non-Institutional Buyers (NIIs) at 51.43 times.

Seshaasai Technologies Business and IPO Structure

Seshaasai Technologies Limited, established in 1993, provides technology solutions for payments, secure communication fulfilment, and IoT/RFID. The company is a key player in designing and manufacturing EMV payment cards and secure documents for BFSI, telecom and enterprises. The total IPO size is Rs 813.07 crore, comprising a Fresh Issue of Rs 480 crore and an Offer for Sale (OFS) of approximately Rs 333.07 crore. The Price Band is set between Rs 402 and Rs 423 per share. A large part of the fresh issue, Rs 300 crore, is dedicated to repaying or prepaying outstanding borrowings, and Rs 197.91 crore is earmarked for funding capital expenditure to expand existing manufacturing units.

Financial Performance and Market Tailwinds

The company has shown strong profitability and healthy margins. In FY25, Revenue from Operations was Rs 1,463.15 crore, supporting a Net Profit of Rs 224.36 crore. Operating leverage is evident as the EBITDA Margin expanded to 25.31 per cent and the Net Profit Margin reached 15.33 per cent in FY25. The company operates in high-growth segments: India’s payment card manufacturing market is projected to nearly double from Rs 3,080.40 crore in FY24 to Rs 6,168.40 crore by FY2030 (a 12.30 per cent CAGR). Furthermore, the global eSIM connections market is expected to grow at a substantial 39.10 per cent CAGR.

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Valuation and Operational Strength

At the upper price band, the IPO implies a P/E of 28.08x on the FY25 diluted EPS of Rs 15.06 and an EV/EBITDA of 19.15x. This valuation is considered moderate for a high-growth, tech-manufacturing company with high entry barriers via its security certifications. The company maintains strong post-issue return ratios, with a Return on Equity (ROE) of 20.04 per cent and Return on Capital Employed (ROCE) of 24.87 per cent. Crucially, the company has managed its working capital well, with Cash Flow from Operations (CFO) growing at an 83.24 per cent CAGR over the past two years, reaching Rs 168.12 crore in FY25. Leverage remains manageable with a moderate Debt/Equity ratio of 0.59.

Disclaimer: The article is for informational purposes only and not investment advice.