By the end of Day 2, the issue had been subscribed 46% of the 56.32 lakh shares on offer, largely supported by Qualified Institutional Buyers (QIBs), who subscribed 1.27 times their allotted portion.
The Rs 1,087 crore public issue is entirely an offer for sale (OFS) of up to 80,43,300 equity shares by existing shareholders, meaning the company will not receive any proceeds from the IPO.
The price band for the issue has been fixed at Rs 1,287 to Rs 1,352 per share, with a lot size of 11 shares. The stock is proposed to be listed on the BSE and NSE. At the upper end of the price band, the company is valued at an estimated market capitalisation of around Rs 5,971 crore.
The allocation structure reserves 50% of the issue for Qualified Institutional Buyers, 15% for Non-Institutional Investors and 35% for Retail Investors.
Sedemac Mechatronics IPO GMP today:
In the grey market, Sedemac Mechatronics shares are currently trading at no premium to the upper price band of Rs 1,352.
The grey market premium (GMP) reflects the price at which shares are being traded unofficially before listing. It is an informal market indicator of investor sentiment and demand and does not guarantee the actual listing price of the stock.
Sedemac Mechatronics IPO subscription details:
According to data from the BSE, the IPO was subscribed 46% overall by the end of Day 2.
The Retail Individual Investors (RIIs) segment saw a 9% subscription against the 28.12 lakh shares allocated for this category.
The Non-Institutional Investors (NIIs) portion was subscribed 25% against the 12.05 lakh shares on offer.
Meanwhile, the Qualified Institutional Buyers (QIBs) category witnessed the strongest demand, with a subscription of 1.27 times for the 16.07 lakh shares reserved for institutional investors.
About Sedemac Mechatronics
Sedemac Mechatronics, a Pune-based technology company, develops and manufactures control-intensive electronic control units (ECUs) for mobility and industrial applications. Its product portfolio includes integrated starter generator (ISG) ECUs, electronic fuel injection (EFI) ECUs, EV motor controllers and genset control units.
The company has established a strong presence in the two- and three-wheeler segment and derives a significant share of its revenue from a limited set of OEM customers.
On the financial front, Sedemac has reported strong growth. Its revenue from operations rose from Rs 423 crore in FY23 to Rs 658 crore in FY25, while profit after tax increased sharply to Rs 47 crore in FY25 from Rs 6 crore in FY24. EBITDA margins also improved to 18.4% in FY25, up from 11.2% in FY23. For the nine months ended FY26, the company reported revenue of Rs 771 crore and a PAT of Rs 71 crore.
However, the IPO is priced at relatively steep valuations. Based on the pre-issue capital and the upper end of the price band, the stock is valued at a trailing P/E of around 126.9 times its FY25 earnings.
Should you subscribe?
Brokerage opinions on the IPO are mixed. SBI Securities has recommended subscribing to the issue with a long-term perspective, citing Sedemac’s leadership in control-intensive ECU technology, strong market share in ISG ECUs and genset controllers, and innovation-driven growth supported by in-house R&D.
The brokerage highlighted that revenue, EBITDA and PAT have grown at annualised rates of 34%, 64% and 123%, respectively, between FY23 and FY26E. It also noted that the company’s specialised products and OEM approvals create significant entry barriers. However, it warned that strong listing or short-term gains may be limited.
On the other hand, Swastika Investmart has given the IPO an “Avoid” rating. The brokerage noted that although the rebound in profitability in FY25 is positive, it follows a weak FY24 and needs to demonstrate sustained consistency. It also emphasised that the valuation, around 127 times trailing earnings, offers limited margin of safety.
Swastika also flagged risks such as high customer concentration, with a large share of revenue dependent on a few OEMs, and significant exposure to the mobility segment, which contributes most of the company’s revenue.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times.)