Seshaasai Technologies, a company known for its expertise in secure printing, payment card manufacturing, and digital solutions, has launched its Initial Public Offering (IPO) in September 2025. With strong roots in the banking and financial services industry, the company aims to raise funds to expand operations, repay debt, and strengthen its market presence.
Key IPO Details
- IPO Open Dates: 23 September 2025 to 25 September 2025
- Price Band: ₹402 to ₹423 per share
- Lot Size: 35 shares per lot (minimum investment around ₹14,805 for retail investors)
- Total Issue Size: ₹813 crore
- Fresh Issue: ₹480 crore
- Offer for Sale (OFS): ₹333 crore
- Allotment Date: 26 September 2025
- Listing Date: 30 September 2025
- Stock Exchange: BSE and NSE
Company Overview
Seshaasai Technologies has grown from a security printing provider into a diversified technology-driven business. Its services include:
- Manufacturing of debit, credit, and prepaid payment cards
- Secure printing of cheques and confidential financial documents
- RFID, NFC, and IoT-based smart solutions for asset tracking
- Data management and communication services
The company operates multiple facilities across India, including Navi Mumbai, Bengaluru, Nagpur, Okhla, and Kundli, serving over 700 clients, mostly from the BFSI sector.
Financial Performance
- FY25 Revenue: About ₹1,463 crore
- FY25 Net Profit (PAT): Around ₹222 crore
- FY24 Revenue: Higher at ₹1,569 crore, showing a slight decline in growth
- Profit margins improved, signaling better operational efficiency despite lower revenue
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The company has maintained steady profitability, but the revenue decline highlights challenges in the current business environment.
Use of IPO Proceeds
The funds raised through the IPO will be utilized for:
- Expansion and upgrade of manufacturing and technology facilities (~₹197 crore)
- Repayment and prepayment of borrowings (~₹300 crore)
- General corporate purposes and working capital needs
This strategy is expected to reduce debt levels and enhance long-term growth opportunities.
Risks and Challenges
- Revenue Decline: The drop in revenue from FY24 to FY25 raises concerns about consistent growth.
- Sector Dependence: Heavy reliance on BFSI clients makes the company vulnerable to industry fluctuations.
- Digital Shift: Increasing use of UPI and digital wallets may reduce demand for physical cards and secure printed documents.
- Valuation: At the upper band, the IPO is valued at around 30× earnings, which is relatively high and leaves limited room for error.
Market Response
The IPO generated good interest among investors and was subscribed multiple times by closing. On its debut, the stock listed with a small premium over the issue price, reflecting moderate but positive sentiment.
Investor Outlook
Seshaasai Technologies offers investors exposure to a niche but critical sector supporting India’s banking and payments ecosystem. The company’s diversified solutions and strong client base are positives, but the risks of digital disruption and high valuations cannot be ignored.
- Short-Term View: Likely to see moderate listing gains due to investor interest.
- Long-Term View: Suitable for investors with patience and a medium-to-long investment horizon, provided the company continues to adapt to changing digital trends.
