Sedemac Mechatronics opened its initial public offering for subscription on March 4. The company aims to raise ₹1,087.45 crore through the issue. The offering is entirely an offer for sale, meaning the company will not receive any fresh capital from the IPO. A total of 80 lakh equity shares are being offered for sale.
The price band for the issue has been set at ₹1,287 to ₹1,352 per share. The minimum lot size is 11 shares. Retail investors are required to apply for at least one lot, implying a minimum investment of ₹14,872.
The registrar to the issue is MUFG Intime India. ICICI Securities, Avendus Capital and Axis Capital are acting as the book-running lead managers. Since the entire issue is structured as an offer for sale, the proceeds, after deducting issue-related expenses and taxes, will be received by the selling shareholders rather than the company.
Promoters Manish Sharma and Ashwini Amit Dixit are selling part of their holdings in the offer for sale. A91 Emerging Fund II and NRJN Family Trust are also reducing their stakes. Exponentia Opportunities Fund II and MES are among the other shareholders offering shares in the issue. 360 One Special Opportunities Fund Series 8 and 360 One Monopolistic Market Intermediaries Fund are also participating in the share sale. HDFC Life Insurance Company and Exponentia Opportunities Fund are included among the selling shareholders.
Under the allocation structure, 50 percent of the issue has been reserved for qualified institutional buyers. Non-institutional investors have been allocated 15 percent of the issue, while at least 35 percent is reserved for retail investors.
Market participants are also tracking the grey market premium for indications of investor sentiment. In the unofficial market, the company’s shares were trading at around ₹1,355, approximately ₹3 above the upper price band of ₹1,352. Grey market premium is an unofficial indicator and does not carry formal confirmation.
Sedemac Mechatronics manufactures control-based equipment for vehicles and generator sets. The company has a presence in the ISG ECU and generator controller segments. It operates in a specialised technology segment within the automotive component industry.
The company maintains relationships with major vehicle manufacturers. Its operations are positioned within a niche segment of the auto ancillary industry that focuses on electronic control systems.
According to analysts at Swastika Investmart, the company’s profit has improved in recent periods. Net profit increased eight times in FY2025. The analysts noted that the growth may partly reflect the low base of FY2024.
ICICI Securities stated that the company’s financial position remains stable. Profit margins are around 20 percent. Return on equity and return on capital are both above 20 percent.
At the upper price band of ₹1,352 per share, the company is valued at about 63 times price-to-earnings based on estimated FY2026 figures.
