Seshaasai Technologies, a technology-driven multi-location solutions provider, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI), to raise funds via an Initial Public Offering (IPO).
The issue is proposed to be a mix of fresh issue of equity shares of up to Rs 600 crore and an offer for sale (OFS) of up to 39.37 lakh equity shares.
Pragnyat Pravin Lalwani and Gautam Sampatraj Jain will be offloading their stake under the OFS component.
The offer will also include a reservation for a subscription by the eligible employees and a discount will be offered to those employees bidding in the employee reservation portion.
The proceeds from the fresh issue to the extent of Rs 195.33 crore will be used for funding capital expenditure for the expansion of existing manufacturing units and Rs 300 crore will be used for the repayment and / or prepayment of certain outstanding loans of the company and general corporate purposes.
The company, in consultation with the book running lead managers (BRLMs), may consider a further issue of specified securities, aggregating up to Rs 120 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
The offer will be made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual investors respectively.
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About Seshaasai Technologies
Seshaasai Technologies is a technology-driven, multi-location solutions provider specializing in payment solutions, communication, and fulfillment services. Catering primarily to the banking, financial services, and insurance (BFSI) sector, the company places data security and compliance at the heart of its offerings.
Beyond BFSI, the company also offers Internet of Things (IoT) solutions to a diverse clientele across various industries.
Seshaasai is a leading player in India’s payment card manufacturing space, holding a 34.5% market share in credit and debit card issuance in Fiscal 2024, up from 23.7% in Fiscal 2022. It is also recognized as one of the largest manufacturers of cheque leaves in the country.
The company operates across three primary business verticals: Payment Solutions, Communication and Fulfillment Solutions, and IoT Solutions. Over the years, Seshaasai has leveraged its expertise in printing technologies, advanced manufacturing equipment, and problem-solving capabilities to deliver customized solutions to sectors such as education and global direct mailing.
As one of the few vendors in India with approved facilities for producing plastic, metal, sustainable, and biometric cards, as well as wearables and payment stickers, Seshaasai demonstrates robust manufacturing capabilities. Its units have the capacity to produce over 0.47 million cards and 1.25 million RFID tags daily (as of June 30, 2024).
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Seshaasai Technologies financial performance
Seshaasai Technologies’ standalone revenue from operations grew at a CAGR of 52.21% from Rs 672.56 crore in Fiscal 2022 to Rs 1558.26 crore in Fiscal 2024. Profit for the year grew from Rs 37.35 crore in Fiscal 2022 to Rs 169.28 crore in Fiscal 2024 growing at a CAGR of 112.88%.
For the three months ended June 30, 2024, consolidated revenue from operations stood at Rs 360.50 crore and profit after tax stood at Rs 40.49 crore.
BLRM and registar to Seshaasai Technologies IPO
IIFL Capital Services Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the issue.
Seshaasai Technologies listing platforms
The shares of Seshaasai Technologies are proposed to be listed on the BSE and National Stock Exchange of India (NSE).
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