Seshaasai Technologies IPO day 2: GMP, subscription status, review, other key details. Apply or not?

Seshaasai Technologies IPO day 2: The initial pubic offering (IPO) Seshaasai Technologies IPO opened for subscription on Tuesday, September 23, and will conclude on Thursday, September 25. The mainboard issue has already been fully subscribed and the grey market suggest the stock could be listed at a premium.

Seshaasai Technologies IPO GMP

According to stock market sources, the last grey market premium (GMP) of the Seshaasai Technologies IPO was ₹75. Considering the upper price band of the issue at ₹423 per share, the estimated listing price of Seshaasai Technologies shares is ₹498, a premium of 18 per cent.

Seshaasai Technologies IPO subscription status

By 10:50 am on the second day of subscription on Wednesday, Seshaasai Technologies IPO had seen an overall subscription of 1.39 times, receiving bids for 1,90,79,095 shares against 1,37,67,095 offered.

The retail portion was subscribed to 1.60 times, the NII (non-institutional investor) portion was booked to 2.68 times, and the portion reserved for employees was subscribed to 2.67 times. The QIB (qualified institutional buyer) portion was subscribed 0.01 times.

Seshaasai Technologies IPO key details

Seshaasai Technologies IPO, with a price band of ₹402 to ₹423 per share, will close on Thursday, September 25.

The mainboard IPO is a combination of fresh issue of 1.13 crore equity shares worth ₹480 crore, and an offer-for-sale (OFS) component of 78.74 lakh shares amounting to ₹333.07 crore.

IIFL Capital Services Ltd. is the book running lead manager and MUFG Intime India Pvt. Ltd. is the Seshaasai Technologies IPO registrar.

The company intends to use the net issue proceeds to fund capex for the expansion of existing manufacturing units, the prepayment and repayment of borrowings, and general corporate purposes.

The company is expected to finalise share allotment on Friday, September 26. On the next business day, on Monday, September 29, shares will be credited to the demat accounts of successful bidders. Those who fail to get the allotment will get the refund on the same day.

Seshaasai Technologies shares will list on the BSE and the NSE on Tuesday, September 30.

Seshaasai Technologies IPO: Should you apply?

Seshaasai Technologies is a technology-driven company that delivers secure and customised solutions across smart card manufacturing, secure print products, and digital transformation services.

The company's core strength is its established leadership position in the large and regulated payment solutions industry with high barriers to entry.

However, a large share of revenue comes from a limited customer base, which is a key risk.

Some experts believe the IPO is worth betting on for the long term.

Motilal Oswal Wealth Management has a "subscribe" recommendation on the issue.

"Seshaasai has a leadership position in the regulated payment solutions industry with advanced pan-India manufacturing capabilities and an elite client base. With high industry growth potential, strong financial performance and fair valuation at 30.8 times FY25 P/E, offering a PEG ratio of 0.82, we recommend investors to ‘subscribe’ to the issue," said the brokerage firm.

Master Capital Services believes the company is well-positioned to capture this upcoming growth by consolidating its leadership in payment solutions and expanding offerings in the IoT and RFID space.

"It is also focusing on entry into international markets. Investors may consider the IPO as a long-term investment opportunity," said the brokerage firm.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.