IPO Details

• IPO Opening: September 23, 2025
• IPO Closing: September 25, 2025
• IPO Size: Rs. 813.07 crore
• Fresh Issue: Rs. 480 crore
• Offer For Sale (OFS): Rs. 333.07 crore
• IPO Price: Rs. 402 – Rs. 423 per share
• Lot Size: 35 shares
• Investor Allocation: QIB 50%, NII 15%, Retail 35%, Employee Rs. 2 crore
• Lead Managers: IIFL Capital Services Ltd., ICICI Securities Limited, SBI Capital Markets Limited
• Registrar: MUFG Intime India Pvt. Ltd.

About the Company

• Seshaasai Technologies is a technology-driven solutions provider for the BFSI industry, focusing on payments, communications, and fulfilment solutions. It is one of the top two payment card manufacturers in India and also offers IoT solutions. The company’s offerings are powered by its proprietary platforms, ensuring data security and compliance.
• Main Products/Services: Payment Solutions (cards, cheques, QR codes, wearables), Communication & Fulfilment Solutions (omni-channel communications), and IoT Solutions (RFID tags, labels, and ecosystem services).
• Sales & Manufacturing Units: 24 manufacturing units across seven locations in India.
• Employees: 862 on payroll as of June 30, 2025.
• Network: Pan-India network of 24 manufacturing units.

Financials

Post IPO Market Cap: Rs. 6844.18 crore Market Cap/Sales (FY25): 4.68 times P/E FY24: 40.44 times P/E FY25: 30.79 times

The company has reported consistent growth in its bottom lines for the reported periods. It experienced a slight degrowth in its top line for FY25 compared to FY24, which the company attributes to lower activity in the card business. Profit margins have shown improvement over the last three fiscals.

Salient points

• Use of Funds: To be utilized for funding capital expenditure for expansion of existing manufacturing units (Rs. 197.91 crore), repayment of certain borrowings (Rs. 230.00 crore), and for general corporate purposes.
• Business Verticals: The company operates across three verticals: Payment Solutions (62.52% of FY25 revenue), Communication & Fulfilment Solutions (29.70%), and IoT Solutions (7.26%).
• Growth Strategies: To consolidate its leadership position in payment solutions, expand offerings in the IoT and RFID space, increase wallet share from existing customers, and focus on entering international markets and strategic acquisitions.
• Risks: The company faces risks such as dependence on a limited number of customers, concentration in the BFSI industry vertical, extensive compliance requirements in contracts, and potential obsolescence of existing solutions due to new technologies.
• Litigations: There are outstanding legal proceedings involving the company, its promoters, and directors, primarily related to tax matters. The aggregate amount involved for proceedings against the company is Rs. 138.27 crore.
• Revenue Split by Product (FY25): Payment Solutions: 62.52%, Communication & Fulfilment: 29.70%, IoT Solutions: 7.26%.
• Capacity Utilisation (FY25): Cheques: 44.07%; Cards: 63.99%; Metal Cards: 18.24%; Off-set Printing: 64.12%; RFID Hang tags & labels: 54.91%.
• Clients: The company serves major public sector, private, and small finance banks, along with insurance companies and fintechs. It serviced a total of 702 customers in FY25.
• Receivables Trend: Receivable days were 72.90 in FY25, an increase from 51.69 in FY24 but similar to 70.30 in FY23.
• CAGR (FY23-FY25): Revenue: 13%; PAT: 43%.

Anchor Investors

he company allotted 57.52 lakh equity shares at the upper price band of ₹423 per share to 17 anchor investors. Some prominent anchor investors include:

• Nippon India Mutual Fund
• ICICI Prudential Mutual Fund
• UTI Mutual Fund
• Motilal Oswal Mutual Fund
• Sundaram Mutual Fund
• Tata AIG General Insurance Company
• Nippon Life India
• Valuequest India
• Tata AIA General Insurance
• HSBC Mutual Fund
• DSP Mutual Fund
• Franklin India
• Axis Max Life Insurance

Peers

As per the offer document, the company has no listed peers to compare with. (Source: RHP)

Management commentary

• According to the management, the company enjoys a niche position in its segment by providing user-friendly solutions for the BFSI sector.
• With ongoing trends, management is confident of maintaining its financial performance in the coming years, consistent with the performance indicated by the last three fiscals.

Opinion

• I may apply for the IPO.
• Post IPO equity capital: Rs. 161.80 crore.
• P/E for FY 24: 40.44 times.
• P/E for FY 25: 30.79 times.
• Investment Rationale:
  • Leadership position as one of the top two payment card manufacturers in India, an industry with high barriers to entry.
  • Strong and consistent growth in profitability and healthy return ratios like ROE and ROCE.
  • Diversified business model with strategic expansion into high-growth sectors like IoT and RFID solutions.
  • Long-standing relationships with a large and recurring customer base, primarily in the stable BFSI industry.

• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.