Mumbai-based Seshaasai Technologies Limited, a technology driven multi-location solutions provider, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on December 27, 2024.
The IPO is a mix of fresh issue of shares of up to Rs. 600 crore and 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.
The company, in consultation with the 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 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 repayment and / or prepayment, in part or in full, of certain outstanding loans of the Company; and general corporate purposes.
Seshaasai Technologies focusses on offering payments solutions, and communications and fulfilment solutions catering primarily to the banking, financial services and insurance (“BFSI”) industry, with data security, and compliance at the core of its solutions. Solutions, that it offers at scale and on a recurring basis driven by its proprietary platforms, play a crucial role in enabling the operations and deliverables of the BFSI sector in India. It also offers Internet of Things (“IoT”) solutions to a diverse set of customers across industries.
It is one of the top two payments card manufacturers in India with a market share of 34.5% in Fiscal 2024 for credit and debit cards issuance in India improving from 23.7% in Fiscal 2022. (Source: F&S Report) It is also one of the largest manufacturers of cheque leaves in India. (Source: F&S Report).
Company is one of the few vendors in India to have approved facilities for manufacturing of plastic cards, metal cards, sustainable cards, biometric cards, wearables, and payment stickers. The company units have an installed capacity to manufacture over 0.47 million cards and over 1.25 million RFID tags in a single day, as of June 30, 2024.
The company has National Payments Corporation of India (RuPay), Payment Card Industry (PCI) and Indian Banks Association (IBA) certifications.
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.
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. The equity shares are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited