Seshaasai Technologies Ltd IPO

About Seshaasai Technologies Limited IPO

Seshaasai Technologies Limited is launching an IPO with a total issue size comprising a fresh issue of ₹600 crore and an offer for sale of up to 7,874,015 equity shares by promoter selling shareholders. The shares will be credited to the demat account on TBA. The shares will be allotted on TBA and the refunds will be initiated on TBA.

Objectives of Seshaasai Technologies Limited IPO

• Funding capital expenditure for the expansion of existing manufacturing units
• Repayment and / or prepayment, in part or in full, of outstanding borrowings of the company
• General corporate purposes

Industry Outlook

In 2019, the total market for payment cards in India, which includes credit cards, debit cards, and prepaid payment instruments (PPI), was valued at ₹8.8 billion. By 2023, this market had expanded to ₹24.2 billion, and it is projected to reach ₹61.9 billion by 2029, growing at a compound annual growth rate (CAGR) of 15% during the Fiscal 2024to Fiscal 2029 period.

Among the various segments, credit cards are expected to experience the highest growth, with a projected CAGR of 24.7% in the period between FY 2024 and FY 2029. Prepaid payment instruments (PPI) are expected to follow, with a CAGR of 11% in the same period between FY 2024 and FY 2029.

Company Information

Seshaasai Technologies Limited is a technology-driven, multi-location solutions provider specialising in payment solutions, and communications and fulfilment solutions, primarily catering to the BFSI (Banking, Financial Services, and Insurance) sector. It is one of the top two payment card manufacturers in India, with its market share increasing from 23.7% in FY22 to 34.5% in FY24 for credit and debit card issuance. They are also one of the largest manufacturers of cheque leaves in India. (Source: F&S Report). They also offer Internet of Things (“IoT”) solutions to a diverse set of customers across industries.

Risks of Seshaasai Technologies Limited IPO

• Dependence on key customers: A significant portion of the company’s revenue is derived from a limited number of customers. For instance, the top 10 customers contributed 65.84% of revenue for the three months ending June 30, 2024, and any loss or reduction in business from these customers could adversely affect financial performance.

• Compliance and contractual obligations: The company’s contracts with customers require strict adherence to compliance standards, including information security, manufacturing policies, and regulatory approvals. Failure to meet these obligations could result in contract termination or legal actions, impacting operations and reputation.

• Reliance on government projects: A substantial portion of revenue comes from government and public sector undertakings, accounting for 41.50% of revenue in the three months ending June 30, 2024. Changes in government policies, budget allocations, or political conditions could disrupt these projects and affect revenue stability.

• Operational risks in manufacturing: The business depends on its network of 24 manufacturing units, which are subject to risks such as equipment failure, natural disasters, or labour disruptions. Any significant slowdown or shutdown in operations could lead to delays, increased costs, and reduced production capacity.

IPO registrar and book running lead manager

• Registrar: Link Intime India Private Limited

• Book Running Lead Managers:

1. IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
2. ICICI Securities Limited
3. SBI Capital Markets Limited

Business Model

Seshaasai Technologies’ business is divided into three verticals: Payment Solutions, Communication and Fulfilment Solutions, and IoT Solutions.

Payment Solutions manufactures and personalises payment instruments like debit and credit cards, cheques, QR codes, and innovative products such as NFC-enabled wearables and biometric cards. Its Communication and Fulfilment Solutions include secure omni-channel communications like policy documents, financial statements, and identity cards for BFSI clients and government agencies, supported by an efficient inventory and order management system.

The IoT Solutions segment offers RFID-enabled tags, inlays, and end-to-end IoT ecosystem services catering to industries such as retail, logistics, and manufacturing. All these solutions are powered by proprietary platforms like RUBIC, which processes customer data securely to deliver personalised outputs that enhance customer experience and operational efficiency.

Company Growth Trajectory

Seshaasai Technologies Limited has demonstrated a robust growth trajectory in both revenue from operations and EBITDA over the past three fiscal years. Revenue from operations grew significantly, increasing by 70.44% from ₹672.55 crore in FY22 to ₹1,146.29 crore in FY23, and further by 35.94% to ₹1,558.25 crore in FY24. Similarly, EBITDA nearly doubled with a 96.16% growth from ₹105.74 crore in FY22 to ₹207.42 crore in FY23, followed by a 46.08% increase to ₹303.01 million in FY24.

How to Check Allotment Status of Seshaasai Technologies Limited IPO?

1. Visit the Registrar's Website To check the IPO allotment status for Seshaasai Technologies Limited IPO, visit the official website of Link Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the 'Submit' button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps:

• Select 'Equity' from the dropdown menu
• Choose 'Seshaasai Technologies Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your Seshaasai Technologies IPO allotment status will be displayed.

1. Verify on the National Stock Exchange Website The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Seshaasai Technologies IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Seshaasai Technologies IPO bid and allotment details will be displayed.

How to Apply for Seshaasai Technologies Limited IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.