Seshaasai Technologies IPO Gets Green Light By SEBI: Rs 600 Cr Fresh Issue + Major OFS Announced

Seshaasai Technologies Limited, a Mumbai-based company that submitted its initial public offering (IPO) documents with SEBI on December 27, 2024, has got final approval from the Securities and Exchange Board of India (SEBI), to raise funds through an IPO. An offer for sale (OFS) of up to 39,37,008 equity shares by Pragnyat Pravin Lalwani and up to 39,37,007 equity shares by Gautam Sampatraj Jain is part of the initial public offering (IPO), which also includes a fresh issue of shares up to Rs. 600 crore.

The company may think about issuing further specified securities totalling up to Rs. 120 crore as pre-IPO placement after consulting with the BRLMS. Rs. 195.33 crore of the proceeds from the fresh offering will be used for funding capital expenditures for the expansion of current manufacturing facilities, and Rs. 300 crore will be used for general corporate purposes as well as the partial or complete repayment of some of the company's outstanding loans.

From Rs. 672.56 crore in Fiscal 2022 to Rs. 1558.26 crore in Fiscal 2024, Seshaasai Technologies's standalone revenue from operations climbed at a compound annual growth rate (CAGR) of 52.21%. At a compound annual growth rate (CAGR) of 112.88%, the profit for the year grew from Rs. 37.35 crore in Fiscal 2022 to Rs. 169.28 crore in Fiscal 2024. Consolidated revenue from operations for the three months ending June 30, 2024, was Rs. 360.50 crore, while profit after tax was Rs. 40.49 crore.

Data security and compliance are at the heart of Seshaasai Technologies' payments, communications, and fulfillment solutions, which are primarily aimed at the banking, financial services, and insurance ("BFSI") sector. Additionally, it provides Internet of Things ("IoT") solutions to a wide range of clients from various sectors.

With a market share of 34.5% in Fiscal 2024 for credit and debit card issuance in India, up from 23.7% in Fiscal 2022, it is among the top two payment card producers in the country. Additionally, it is among India's largest producers of cheque leaves. The F&S Report is the source. The company is among the few suppliers in India with authorised facilities for producing payment stickers, wearables, biometric cards, metal cards, plastic cards, and sustainable cards. As of June 30, 2024, the company's divisions can produce more than 1.25 million RFID tags and 0.47 million cards in a single day.

The company is certified by the Indian Banks Association (IBA), the Payment Card Industry (PCI), and the National Payments Corporation of India (RuPay). The IPO's registrar is Link Intime India Private Limited, while the book-running lead managers are IIFL Capital Services Limited, ICICI Securities Limited, and SBI Capital Markets Limited. It is proposed that the equity shares be listed on NSE and BSE.