IPO Note : Seshaasai Technologies Ltd by Geojit Financial Services Ltd
Sole Provider of Secure Payment and IoT Solutions.
Seshaasai Technologies Ltd. (STL), established in 1993 and headquartered in Mumbai, is a technology-driven provider of secure, integrated solutions. The company operates across multiple locations, delivering a wide range of offerings including payment solutions (debit, credit, prepaid, and transit cards), communication and fulfilment services, as well as IoT-based solutions. STL’s comprehensive portfolio caters to the varied requirements of clients across the banking, government, and enterprise sectors.
* The Indian payment cards market, valued at Rs.9,071mn in FY20, expanded to Rs.30,804mn by FY24. It is expected to nearly double, reaching Rs.61,684mn by FY30, representing a CAGR of 12.3% over FY24–30.
* From FY23 to FY25, STL reported revenue, EBITDA, and PAT growth at CAGRs of 13%, 34.2%, and 43.4%, respectively, with figures reaching Rs.1,463cr, Rs.360cr, and Rs.222cr. This performance was underpinned by consistent product innovation and diversification across business verticals.
* In FY25, STL’s EBITDA margin improved to 21.8% (vs. 17.4% in FY23), while PAT margin rose to 15.2% from 9.4%, driving a robust ROE of 35%.
* STL reported a debt-to-equity ratio of 0.6x in FY25, which is projected to reduce significantly to 0.1x post-IPO, aided by debt repayment of ~Rs.300cr from the proceeds.
* The company’s card manufacturing capacity has grown from 7.30mn/month in FY23 to 11.94mn/month in FY25. Its Radio Frequency Identification (RFID) tag production currently stands at 41.67mn/month, with plans to further expand metal card manufacturing (producing payment cards that use a metal core or metal layers instead of just plastic) at the Navi Mumbai and Bengaluru facilities.
* At the upper price band of Rs.423, Seshaasai Technologies Ltd. trades at a FY25 P/E of 30.8x. The company is diversifying beyond traditional printing (printing physical items like cheque books, passbooks, and cards for banks and businesses) into RFID, including smart traceability and digital identity, which are gaining adoption across retail, logistics, healthcare, and manufacturing, creating new revenue opportunities. Ongoing investments in automation, R&D, and capacity expansion position STL for scalable growth. Therefore, we assign a SUBSCRIBE rating for investors with a long-term perspective.
Purpose of IPO
The IPO consists of a fresh issue of up to 11,347,588 equity shares worth Rs.480cr and an Offer for Sale (OFS) of up to 7,874,015 shares worth Rs.333cr. The proceeds from the issue are intended for: (i) funding capital expenditure to expand existing manufacturing units (Rs.197.9cr), (ii) repayment and/or prepayment, in full or in part, of certain outstanding borrowings (Rs.300cr), and (iii) general corporate purposes.
Key Risks
* Risk of obsolescence due to emerging and advanced technologies.
* The company is heavily reliant on the BFSI sector.
* Exposure to risks associated with government projects, institutions, and public sector enterprises.
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SEBI Registration Number: INH200000345
