IPO closes on 25 Sep'25
Seshaasai Technologies Ltd
Minimum Investment
₹ 14,805 / 35 shares
Our Verdict:
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- Seshaasai Technologies Ltd (STL) has demonstrated impressive revenue and PAT growth over the past three years. The company benefits from high entry barriers, robust client loyalty, and a leadership position in the rapidly expanding payments ecosystem, making it well-positioned for sustained growth.
- STL currently has the capacity to produce over 0.47 million cards daily. Management plans to enhance this capacity using ~Rs 198 crore from the IPO proceeds, along with an additional Rs 300 crore aimed at debt reduction.
- Valuation-wise, the IPO is valued at a Price-to-Earnings (PE) ratio of 28x based on FY25 earnings. Due to the absence of direct competitors in the market, drawing comparisons is difficult.
- The total addressable market (TAM) for India's card manufacturing is expected to nearly double by FY30. Additionally, global adoption of RFID and eSIM technologies continues to grow, further strengthening demand for STL’s core products.
- With a strong foothold in secure payments and IoT, improving margins and a focus on prudent deleveraging, STL is poised for sustainable growth.
- While long-term prospects look promising, short-term performance may be influenced by market sentiment. Therefore, investors with a long-term perspective may consider subscribing to this IPO.
About the company
Founded in
17 Sep'93
Managing director
Pragnyat Lalwani
- STL follows a multi-vertical business model, designed to meet the complex needs of the Banking, Financial Services and Insurance (BFSI) sector, along with adjacent industries. Its offerings span (i) Payment Solutions (cheque leaves, plastic and metal cards, biometric cards), (ii) Communication & Fulfilment Solutions (offset printing, customer communication, account statements) and (iii) IoT Solutions (RFID tags, QR solutions, IoT-enabled products).
- As of 31 March 2025, STL operates 24 manufacturing units across 7 locations in India, ensuring pan-India reach and logistical efficiency. Its installed capacity enables it to produce over 4.7 lakh cards and 16.7 lakh RFID tags per day, reflecting its large-scale, industrial-grade operations.
STRENGTHS
- Strong Market Positioning: STL ranks as one of the top two payment card manufacturers in India, holding a 31.9% market share in FY25 for credit and debit card issuance, up from 25% in FY23. Additionally, it is a leading manufacturer of cheque leaves in the country.
- Solid Growth: STL has demonstrated impressive performance from FY23 to FY25, achieving a 13% CAGR in operating revenue, 34% in EBITDA and 43% in net profit.
- Margin Expansion: STL has successfully expanded its margins, with the net margin rising from 9.37% in FY23 to 15.09% in FY25 and EBITDA margin growing from 17.98% to 25.13%, reflecting its effective cost control and operational efficiency.
- Healthy Return Metrics: STL boasts impressive return metrics, with a Return on Equity (ROE) of 34.84% and a Return on Capital Employed (ROCE) of 31.87% in FY25, showcasing its ability to generate significant shareholder value and deploy capital efficiently.
- Customer Retention & Acquisition: STL has not only retained existing customers but has also attracted new ones. The customer base has grown from 355 in FY23 to 702 in FY25. Long-term customer relationships (over five years) contribute to 75.54% of the company’s total revenue from operations in FY25.
RISK FACTORS
- Client Concentration: A significant portion of STL's operating revenue is derived from a small group of clients. In FY25, the top 5 clients contributed 49.12% of operating revenue, while the top 10 clients accounted for 65.77%. A loss or reduction in business from any of these key clients could negatively impact STL’s financial performance.
- Import Dependency: STL relies heavily on international markets for sourcing raw materials and certain machinery. In FY25, 39.9% of the total raw materials and machinery were imported. Any restrictions on imports or fluctuations in global commodity prices could adversely affect the firm’s operations, cash flow and overall financial condition.
- Sector Concentration: A large share of STL's revenues (84% in FY25) comes from BFSI clients, making the company vulnerable to sector-specific slowdowns.
- Digital Disruption: While STL has consistently stayed ahead by innovating and investing in new technologies, the pace of change in the payments industry is accelerating. A swift shift in technological trends could render its current products and technologies obsolete. For example, the rapid adoption of UPI and wallet-based payments could reduce the long-term demand for physical payment cards.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 813.07 crore
Fresh Issue
₹ 480 crore
OFS
₹ 333.07 crore
Price range
₹ 402 - 423
Lot size
35 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Expansion of existing manufacturing units;
- Repayment / prepayment of certain outstanding borrowings availed by the Company; and
- General corporate purposes.
Dates
Bidding open
23 Sep'25
Bidding close
25 Sep'25
Allotment date
26 Sep'25
Refund date
29 Sep'25
Listing
30 Sep'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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