Seshaasai Technologies Gets SEBI Approval for IPO; To Raise Rs. 600 Crore
Seshaasai Technologies Limited, a leading multi-location solutions player in Mumbai, has obtained SEBI approval for its upcoming initial public offering (IPO). The firm, which is renowned for its payment, communication, and fulfilment integrated solutions, had filed its Draft Red Herring Prospectus (DRHP) on December 27, 2024.
The IPO will have two tranches: a new issue of equity shares worth Rs. 600 crore and an offer for sale (OFS) for up to 78.74 lakh equity shares by promoters. The two promoters, Pragnyat Pravin Lalwani and Gautam Sampatraj Jain, are offering shares via the OFS.
While the company has not yet made an announcement regarding the exact dates and price ranges of the issue, it is also considering making a pre-IPO placement worth as much as Rs. 120 crore. This pre-IPO placement, if made, would reduce the size of the fresh issue proportionally.
The IPO will be managed by leading book-running lead managers IIFL Capital Services, ICICI Securities, and SBI Capital Markets.
The proceeds of the fresh issue will be used for various strategic ends. The company plans to increase capacity in its existing manufacturing facilities and enhance its production capabilities. Additionally, funds will be used to repay or prepay outstanding borrowings. The remaining amount will be applied for general corporate purposes.
Seshaasai Technologies has announced sound financial progress in the year 2024. The firm’s revenues from operations stood at Rs. 1,558.26 crore, which reflects a growth of 35.9% over Rs. 1,146.30 crore last year 2023. Furthermore, the gross profit of the company also grew to Rs. 570.35 crore, up 42.21% from Rs. 400.91 crore last year.
Seshaasai Technologies provides end-to-end solutions to the Banking, Financial Services, and Insurance (BFSI) sector. It also has experience in offering Internet of Things (IoT) solutions across industries. Interestingly enough, the company is among the top two payment card manufacturers in India, with a 34.5% market share in credit and debit card issuing for 2024, an enormous leap from 23.7% in 2022.
With a strong market presence and diverse products, Seshaasai Technologies aims to tap its expansion and expand further with the IPO.
