Seshaasai Technologies IPO day 1 LIVE: Here's GMP, subscription status, and other key details — apply or not?

Payments solutions provider Seshaasai Technologies' initial public offering (IPO) opened for subscription today, September 23. The ₹800 crore IPO will remain open for bidding till September 25.

Seshaasai Technologies ranks among the top two payment card producers in India, holding a 31.9% market share in FY25, up from 25% in FY23. It caters to more than 700 clients, including leading BFSI players like HDFC Bank, ICICI Bank, SBI, HDFC Life, and PhonePe. The BFSI segment accounted for nearly 84% of its revenues in FY25.

The company has shown strong financial performance over the past three years. Revenue increased from ₹1,146 crore in FY23 to ₹1,463 crore in FY25, reflecting a CAGR of 13%. Profit after tax (PAT) grew more rapidly, rising from ₹108 crore in FY23 to ₹222 crore in FY25, a CAGR of 43%. Meanwhile, EBITDA margins improved significantly from 17.4% in FY23 to 24.6% in FY25.

Seshaasai Technologies IPO subscription status

On the first day of bidding, the Seshaasai Technologies IPO was subscribed 0.68 times as of 2:50 pm.

The retail portion has received 0.85 times subscription; meanwhile, the Non-Institutional Investors (NIIS) quota and the Qualified Institutional Buyers (QIBs) part were subscribed over 1.13 and 0.00 times.

Seshaasai Technologies IPO Review

Brokerage firm Anand Rathi said, while giving a ‘subscribe for long-term’ rating, said, “At the upper price band, the company is valued at 30.8x FY25 P/E, implying a post-issue market capitalisation of ₹68,441 million. They focus on end-to-end domestic manufacturing of RFID tags, devices, firmware, middleware, and IoT hardware, leveraging their technical expertise to expand production capabilities. They aim to enhance per-customer contributions by closely collaborating to provide a broader, tailored portfolio of solutions. Additionally, they plan to expand their offerings internationally, targeting the SAARC region, parts of Africa, and Eastern Europe."

Considering these factors, the IPO appears fully priced and merits a “SUBSCRIBE – LONG TERM” recommendation, as per the brokerage.

Seshaasai Technologies IPO GMP today

Seshaasai Technologies is witnessing a robust grey market premium (GMP), with its IPO GMP quoted at ₹88 per share today, according to market experts. This suggests that the company’s shares are trading at a 20.88 per cent premium over their issue price in the grey market.

Seshaasai Technologies IPO Details

The IPO includes a fresh share issue worth ₹480 crore along with an offer-for-sale (OFS) of ₹333 crore. Based on the upper price band, the company’s post-issue market capitalisation is pegged at around ₹6,844 crore.

The price band of the Seshaasai Technologies IPO has been set at ₹402 to ₹423, with a face value of ₹10 per share.

Funds raised from the fresh issue will be utilised to enhance metal card manufacturing capacity at the Navi Mumbai and Bengaluru plants, prepay borrowings of ₹300 crore, and cover general corporate expenses.

Investors can apply for a minimum lot of 35 shares, which translates to an investment of ₹14,805 at the upper price band.

The IPO allotment for Seshaasai Technologies is expected on Friday, September 26, with a tentative listing scheduled for Tuesday, September 30. The company’s shares are set to debut on both the BSE and NSE.

The company plans to use the net proceeds from the issue to finance capital expenditure for expanding its existing manufacturing facilities, prepay and repay borrowings, and meet general corporate requirements.

IIFL Capital Services Ltd. is acting as the book-running lead manager, while MUFG Intime India Pvt. Ltd. is serving as the registrar for the Seshaasai Technologies IPO.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.