Seshaasai Technologies Files IPO Papers: Backed by Mathew Cyriac’s Florintree
Mumbai-based Seshaasai Technologies, a leading player in the BFSI sector providing payment, communication, and IoT solutions, has taken its next big leap by filing preliminary IPO papers with SEBI on December 27. The IPO marks a significant milestone for the Florintree-backed company as it seeks to capitalize on its market leadership and scale new heights in the industry.
IPO Structure and Key Details
The IPO comprises a fresh equity issue of Rs 600 crore and an offer-for-sale (OFS) of 78,74,015 equity shares by promoters Pragnyat Pravin Lalwani and Gautam Sampatraj Jain. Ahead of the IPO, the company may consider a pre-IPO placement worth Rs 120 crore, which would reduce the size of the fresh issue accordingly.
Currently, the ownership structure includes:
- Promoters: Pragnyat Pravin Lalwani and Gautam Sampatraj Jain hold 47.5% each.
- Florintree Nextech LLP: A 5% stake was acquired by Mathew Cyriac’s investment firm on December 20, 2024, at Rs 339 per share, translating to a total investment of Rs 250.21 crore.
At this valuation, Seshaasai is valued at over Rs 5,000 crore, reflecting its robust market position and potential.
Market Leadership in BFSI and Payments Space
Seshaasai holds a 34.5% market share in FY24 for credit and debit card issuance, a significant increase from 23.7% in FY22. This positions the company as one of the top two payment card manufacturers in India. Additionally, the firm is a major manufacturer of cheque leaves in the country, further solidifying its dominance in the BFSI sector.
Utilization of Funds
The company has outlined a clear strategy for deploying the fresh issue proceeds:
- Manufacturing Expansion: Rs 195.3 crore will be used to upgrade and expand existing facilities.
- Debt Reduction: Rs 300 crore will go towards repaying outstanding borrowings, significantly reducing the company’s leverage. As of November 15, 2024, total borrowings stood at Rs 327.2 crore.
- General Corporate Purposes: The remaining funds will support overall business operations and growth initiatives.
Financial Performance
Seshaasai Technologies has delivered impressive growth in recent years:
- FY24 Revenue: Rs 1,558.3 crore, up 36% year-on-year.
- FY24 Net Profit: Rs 169.3 crore, a sharp increase of 56.6% from the previous fiscal.
- June 2024 Quarter: Revenue of Rs 360.5 crore and profit of Rs 40.5 crore.
This strong financial performance underscores the company’s resilience and growth trajectory, driven by its market leadership and diversified offerings.
IPO Lead Managers
The IPO is being managed by IIFL Capital Services, ICICI Securities, and SBI Capital Markets, reflecting the high-profile nature of the public offering.
Mathew Cyriac’s Proven Track Record
Mathew Cyriac, a former Blackstone India executive and the force behind Florintree, has a history of successful investments. Previous IPOs from his portfolio, such as Data Patterns and MTAR Technologies, delivered strong returns, setting high expectations for Seshaasai’s market debut.
Conclusion
With its market leadership, robust financials, and clear growth strategy, Seshaasai Technologies is poised to make a significant impact with its IPO. As one of the top players in India’s payments and BFSI infrastructure space, the company’s public debut could unlock further opportunities for growth and expansion, making it a potential standout in the capital markets.