Seshaasai Technologies IPO: Securing Payments & IoT at Scale – Should You Subscribe?

At a Glance

Company and Business Operations

Seshaasai Technologies Limited, incorporated in 1993, provides technology-driven payment, communication fulfilment and IoT/RFID solutions. The company designs and manufactures EMV payment cards and secure documents, runs multi-location personalisation/fulfilment centres, and offers RFID/eSIM and digital communication workflows for BFSI, telecom and enterprises. It operates certified facilities (ISO 20000/27001/22301) with deep process controls and information security. Subsidiaries include Rite Infotech Private Limited (enterprise software) and Atoll Solutions Private Limited (IoT/connected tech); Atoll became a subsidiary in July 2025. A pre-IPO placement at Rs 423 per share was completed in August 2025.

Industry Outlook

India’s payment card manufacturing market was about Rs 3,080.40 crore in FY2024 and is projected to reach Rs 6,168.40 crore by FY2030, a 12.30 per cent CAGR, driven by rapid card issuance, contactless adoption and digital payments. Globally, RFID/IoT tags are a large, long-run growth vector, expected to expand from roughly Rs 13.38 lakh crore in 2024 to Rs 26.31 lakh crore in 2030 at 11.90 per cent CAGR; global eSIM connections are projected to grow at 39.10 per cent CAGR. These secular shifts support Seshaasai’s payments, RFID and eSIM portfolios.

Objects of the Issue

• Funding capital expenditure for expansion of existing manufacturing units: Rs 197.91 crore.
• Repayment/prepayment, in part or full, of certain outstanding borrowings: Rs 300.00 crore.
• General corporate purposes: balance of net proceeds.

SWOT Analysis

• Strengths: Established presence across payment cards, secure fulfilment and RFID/eSIM; high entry barriers via certifications and security stack; strong EBITDA margin expansion to 25.31 per cent in FY25; healthy PAT of Rs 224.36 crore.
• Weaknesses: Working-capital intensity with sizeable receivables and inventories; dependence on BFSI and telecom demand cycles.
• Opportunities: India card-manufacturing TAM poised to double by FY2030 (12.30 per cent CAGR); global RFID and eSIM growth create adjacent scale plays.
• Threats: Regulatory/data-security changes; technology shifts in authentication, tokenisation or SIM architectures; competitive pricing pressure; any slowdown in card issuance.

Profit & Loss (Rs crore)

(Source: Company RHP)

Balance Sheet (Rs crore)

(Source: Company RHP)

Working Capital & Cash Position (Rs crore)

(Source: Company RHP)

Peer Comparison

The RHP states there are no listed companies in India with directly comparable business; hence peer comparison is not applicable.

Outlook & Relative Valuation

Seshaasai operates at the intersection of payments, secure fulfilment and IoT—segments with durable, multi-year tailwinds. India’s card-manufacturing TAM is poised to roughly double by FY2030, while global RFID and eSIM adoption expands steadily, reinforcing demand for the company’s core offerings. Operationally, FY25 performance is solid: EBITDA margin at 25.31 per cent and PAT of Rs 224.36 crore, with net worth at Rs 639.66 crore, indicating improving operating leverage and balance-sheet strength. On valuation, the upper band implies a P/E of 28.08x on FY25 EPS of Rs 15.06 and an EV/EBITDA of 19.15x—broadly in the high-teens to ~20x zone for quality, growth-oriented tech-manufacturing plays. Posst issue the return ratios remains healthy (ROE 20.04 per cent, ROCE 24.87 per cent, ROA 17.77 per cent) and leverage is moderate (Debt/Equity 0.59). Near term, listing outcomes may track appetite for fintech-adjacent names; longer term, execution in RFID/eSIM, deeper BFSI and telecom penetration, and capacity scale-up are likely to drive compounding.

Recommendation

Subscribe (long term). Strong positioning across secure payments and IoT, rising margins and prudent deleveraging support sustained growth. While valuations are not inexpensive, scarcity value (no close listed peers) and favourable TAM visibility offer a sound risk-reward for patient investors. Short-term performance remains sensitive to market sentiment.