SEDEMAC Mech IPO Day 3 LIVE: Issue fully subscribed; should you apply as bidding ends in an hour?

The company is among the key global players with a global market share of 14% in FY25 through genset controllers and EFI ECUs for this market. They are the largest supplier of genset controllers in India with a market share of approximately 75%-77% during the nine months ended December 31, 2025.

However, risks to consider are High revenue concentration risk, exposed to evolving, stage-specific, and proposition-specific risks, dependence on the mobility segment, Regulatory changes and environmental concerns, Technological transition, counterparty credit risk, dependence on top 10 suppliers for raw material, supply chain and geopolitical risks, Dependence on automotive cycle, Margin sustainability risk, indebtedness and an inability to comply with repayment and other covenants in financing agreements could adversely affect the financial condition.

— Sushil Finance

By 3:48 PM on the third day of bidding, the public issue was booked 2.62 times, the retail portion was subscribed 0.18 times, the NII segment was filled 0.73 times, and the QIB segment was subscribed 8.29 times.

1. First-to-market advantage driving market leadership, creates high entry barriers, and enables

sustained competitive dominance

2. Agility at scale through integrated design, engineering, and manufacturing enables rapid innovation

and swift market response

3. Synergies driving cross-market technology use, procurement advantages, and robust partnerships

4. Continued ability to innovate, scale, and embed differentiated technologies

5. Quality, traceability, and reliable delivery.

— Sushil Finance

The issue is priced at a P/BV of 14.38 based on its NAV of Rs. 94.02 as of Dec. 31, 2025. If we annualize FY26 earnings, P/E comes around 63x. The average industry is around 58x. The issue appears aggressively priced.

SEDEMAC Mechatronics is a specialized, high-growth, technology-driven auto component supplier focusing on advanced control-intensive electronic control units (ECUs). While the opportunity exists, the risks are distinct and valuations being on the higher end, making investors to cautiously invest in the issue.

— Sushil Finance

On the financial front, the company has demonstrated Revenue/EBITDA/PAT CAGR growth of 25%/52%/134% between FY23-25. Its ROE and ROCE stand at 22.01% & 33.79% at FY25. Net Debt to Equity significantly improved from 1.16x in FY23 to 0.21x in FY25. EBITDA & PAT Margin stands at 20.9% & 9.28% respectively at 9MFY26. At upper price band of ₹ 227, the company post issue market capital comes to around ₹ 5,971 Cr.

— Sushil Finance

ICICI Securities Ltd. has been appointed lead manager and MUFG Intime India Pvt.Ltd. hs been appointed official registrar of the public issue.

By 1:39 PM on the third day of bidding, the public issue was booked 0.90 times, the retail portion was subscribed 0.14 times, the NII segment was filled 0.38 times, and the QIB segment was subscribed 2.61 times.

By 12:42 PM on the third day of bidding, the public issue was booked 0.80 times, the retail portion was subscribed 0.13 times, the NII segment was filled 0.34 times, and the QIB segment was subscribed 2.30 times.

SEDEMAC operates a design-to-delivery model, in which it collaborates closely with OEM customers from product conceptualisation through validation and commercialisation.

The company undertakes end-to-end development of electronic control units (ECUs), including embedded software programming, hardware circuit design, calibration, testing, and system validation. Its solutions are typically integrated into customer vehicle platforms under long-term supply arrangements, resulting in recurring revenues across product life cycles.

We recommend investors to apply for the public issue.

— Ventura Securities

The most likely SEDEMAC Mechatronics IPO allotment date is 7 March 2026. However, due to Saturday falling on 7 March 2026, the finalisation of share allotment may be delayed for 9 March 2026 i.e. for Monday next week.

By 11:03 AM on the third day of bidding, the public issue was booked 0.51 times, the retail portion was subscribed 0.12 times, the NII segment was filled 0.28 times, and the QIB segment was subscribed 1.36 times.

Company's strengths you may like to know:

• Strong R&D-led engineering capabilities in automotive control.

• Long-standing relationships with leading OEM customers.

• Positioned to benefit from increasing electronic and EV content.

— Ventura Securities

Backed by a dedicated engineering team of over 300 professionals and ongoing investments in automation and R&D, SEDEMAC maintains scalable production capabilities. The capacity framework enables alignment with long-term OEM programs, platform expansions, and volume ramp-ups across internal combustion and electric mobility segments.

The company operates two manufacturing facilities in Pune, Maharashtra, with an aggregate installed capacity running into multiple million electronic control units per annum. Its infrastructure supports PCB assembly, system integration, calibration, and end-of-line validation processes aligned with OEM quality standards.

By 10:12 AM on the third day of bidding, the public issue was booked 0.50 times, the retail portion was subscribed 0.11 times, the NII segment was filled 0.27 times, and the QIB segment was subscribed 1.36 times.

According to market observers, the company's shares are available at a discount of ₹5 in the grey market today. This means the grey market is signalling a discount of ₹5 for SEDEMAC Mechatronics' IPO listing, as the SEDEMAC Mechatronics IPO GMP (Grey Market Premium) today is minus ₹5.