SEDEMAC IPO: Issue Sees Muted Demand, Subscribed 1% On Day 1 So Far

The IPO of deeptech company SEDEMAC Mechatronics opened to a muted demand and was subscribed just 1% at 12:21 IST on the first day of bidding.

The public issue received bids for 64,064 shares against 56.33 Lakh shares on offer.

The portion reserved for qualified institutional buyers (QIBs), which includes foreign and domestic institutions and mutual funds, received no bids.

The non-institutional investors (NII) category was subscribed 0.01 times. It got bids for 6,996 shares against 12.05 Lakh shares on offer. Within this, the higher application size segment (above ₹10 Lakh) saw bids for 3,036 shares, while the ₹2 Lakh to ₹10 Lakh segment got bids for 3,960 shares.

The retail portion was subscribed 2%, getting bids for 54,054 shares against 28.12 Lakh shares reserved for them. 

The portion reserves for employees saw relatively better traction and was subscribed 37%, with bids received for 3,014 shares against 8,169 shares on offer.

Notably, the IPO is entirely an offer for sale (OFS) of up to 80.43 Lakh shares. At the upper end of the price band of ₹1,287 to ₹1,352 per share, the total issue size stands at ₹1,087 Cr. At this price, the company is seeking a valuation of about ₹5,970 Cr (about $647 Mn). 

The issue will close on Friday (March 6) and the company’s shares are expected to list on March 11.

Ahead of the IPO, the company raised ₹325.89 Cr from anchor investors. It allotted 24.10 Lakh shares at ₹1,352 per share to investors including HDFC Mutual Fund, Abu Dhabi Investment Authority, Goldman Sachs and Invesco India, among others.

The IIT Bombay-incubated company was founded in 2007 by Professor Shashikanth Suryanarayana, along with Pushkaraj Panse, Manish Sharma and Ashwini Amit Dixit. It designs and manufactures electronic control systems for mobility and industrial applications. 

The mobility segment contributes nearly 86% of its revenue, and its clients include Tata Motors, Mahindra Group, Ashok Leyland and TVS Motor.

On the financial front, the company reported a net profit of ₹71.4 Cr in the first nine months of FY26 on an operating revenue of ₹770.7 Cr. In FY25, its net profit rose to ₹47.1 Cr, while revenue increased to ₹658.4 Cr.

Selling shareholders in the OFS include cofounders Sharma and Dixit, along with investors such as NRJN Family Trust, Xponentia Capital, A91 Partners, 360 ONE Asset, HDFC Life Insurance and Mace Group. A91 Partners held an 18.16% stake in the company pre-IPO, while Xponentia owned 11.06%.

SEDEMAC last raised $100 Mn in May 2024 in a largely secondary round at a valuation of $260 Mn. Following its listing, it is set to become the fifth new-age tech company to go public in 2026.

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