Sedemac Mechatronics IPO

About Sedemac Mechatronics IPO

The IPO of Sedemac Mechatronics comprises only an offer for sale. There’s no fresh issue in this IPO. The offer for sale aggregates up to 8,043,300 equity shares. It’s a 100% book-built issue. The lot size of shares in the IPO is [TBA] and the price band of shares is between [TBA].

Sedemac Mechatronics IPO opens on [XX] and closes on [YY]. The allotment of shares will take place on [TBA]. The credit of shares to the Demat account will take place on [TBA]. The initiation of refunds will take place on [TBA]. The listing of shares will take place on [TBA].

Sedemac Mechatronics is a supplier of control-intensive, critical-to-the-application electronic control units (“ECUs”) to leading original equipment manufacturers (“OEMs”) in the mobility and industrial markets in India, the United States, and Europe. Majority of its revenue from operations is attributed to products which incorporate novel control technologies that are conceived and developed entirely in-house, enabling it to offer fresh proprietary solutions that provide distinct value to end-users or its OEM customers.

Objectives of Sedemac Mechatronics IPO

The objects of the offer are to carry out the offer for sale of up to 8,043,300 equity shares of face value of ₹ 10 each by the selling shareholders and to achieve the benefits of listing the equity shares on the stock exchanges. Further, the company expects that listing of the equity shares will enhance its visibility and brand image as well as provide a public market for the equity shares in India.

Industry Outlook

The 2W and 3W ICE segments have witnessed significant growth in recent years, driven by increasing demand for affordable and efficient transportation solutions. As industry continues to evolve, the integration of electronic and electrical products has become a key focus area for manufacturers.

The market for ISG was valued at ₹1180.19 crores in fiscal 2025 and is expected to reach ₹ 2200-2300 crores by fiscal 2030 growing at a CAGR, or 13-15%. The volumes for ISG are expected to reach 11,000-12,000 thousand units by fiscal 2030, from over 6,900 thousand units in fiscal 2025. The penetration of ISG is expected to surpass 50% by fiscal 2030 in the ICE segment driven by growing adoption of ISG in the new and existing models.

Sedemac Mechatronics Company Information

Sedemac Mechatronics is a supplier of control-intensive, critical-to-the-application electronic control units (“ECUs”) to leading original equipment manufacturers (“OEMs”) in the mobility and industrial markets in India, the United States, and Europe.

Majority of its revenue from operations is attributed to products which incorporate novel control technologies that are conceived and developed entirely in-house, enabling it to offer fresh proprietary solutions that provide distinct value to end-users or its OEM customers.

Strengths of Sedemac Mechatronics

• First-to-market advantage driving market leadership
• Agility at scale through integrated design, engineering, and manufacturing
• Synergies driving cross market technology use, procurement advantages, and robust partnerships
• Continued ability to innovate, scale, and embed differentiated technologies
• Quality, traceability, and reliable delivery

Risks of Sedemac Mechatronics

• Exposure to evolving, stage-specific, and proposition-specific risks which may materially and adversely affect operations
• Downturn, cyclical fluctuation, or adverse development in this segment could materially impact business, results of operations, and financial condition
• Sustained decline in market acceptance or a shift towards alternative energy could materially impact business, operations, and financial condition
• Reduction in demand or shift to alternative technologies could materially impact business, results of operations, and financial condition
• Significant changes in the Indian two/three-wheeler (2/3W) industry arising from electrification, including shifts in component value and industry structure, could negatively impact business
• Inability to consistently meet in-field quality expectations for products could materially and adversely affect business
• Inability to meet consistent and timely delivery expectations of customers may have a material adverse effect on business
• Inability to continually generate innovative and compelling technologies or products could adversely affect business, financial performance, and prospects for growth
• Dependence on two manufacturing facilities in Pune exposes to regional risks
• Decline in the demand, production, or acceptance of customers’ end-use products could adversely affect business

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: MUFG Intime India
• Book Running Lead Managers: ICICI Securities, Avendus Capital and Axis Capital

Sedemac Mechatronics Business Model

Sedemac Mechatronics is a supplier of control-intensive, critical-to-the-application electronic control units (“ECUs”) to leading original equipment manufacturers. It’s the first company in India to develop, design and manufacture sensorless commutation (“SLC”) based integrated starter generators (“ISG”) ECUs for two-wheeler / 3-wheelers (“2/3Ws”) internal combustion engine (“ICE”) powered vehicles.

Sedemac Mechatronics Growth Trajectory

The revenue from operations of Sedemac Mechatronics jumped from ₹429.866 crores in FY 23 to ₹658.363 crores in FY 25. Its EBITDA margin increased from 12.82% in FY 23 to 19 % in FY 25, while profit margin increased from 2.03% in FY 23 to 7.15% in FY 25.

Agility at scale through integrated design, engineering, and manufacturing coupled with continued ability to innovate, scale, and embed differentiated technologies has helped the company grow over the years.

Sedemac Mechatronics Market Position

Sedemac Mechatronics is an Indian Tier-I supplier selling directly to the OEMs, integrating proprietary solutions into their platforms with deep technical engagement, and supporting these solutions through the lifecycle of the products.

According to the CRISIL Report, it’s among the key global players with a global market share of 14% in fiscal 2025 through its genset controllers and EFI ECUs for this market. It’s the largest supplier of genset controllers in India with a market share of 75% in fiscal 2025.

How to Apply for the Sedemac Mechatronics IPO?

To apply for this IPO:

• Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.