Seshaasai Technologies IPO: Mumbai-based Sheshasai Technologies has planned to raise funds through a public issue. For this, the company filed draft papers with the capital market regulator SEBI on 27 December. Florentry Nextec, owned by former Blackstone India executive Mathew Cyriac, has also invested in the company. According to the Draft Red Herring Prospectus (DRHP), the IPO will see issuance of new shares worth Rs 600 crore. Besides, there will also be an offer for sale of 78,74,015 equity shares by promoters Pragyanyat Praveen Lalwani and Gautam Sampatraj Jain.
The company primarily provides payment, communication and fulfillment, and IoT (Internet of Things) solutions to the banking, financial services and insurance (BFSI) industry. It can also raise Rs 120 crore before the IPO launch. If such pre-IPO placement takes place, the size of the issue of new shares in the IPO will be reduced.
Promoters hold 95 percent shares in Seshaasai Technologies
Promoters Pragyanyat Praveen Lalwani and Gautam Sampatraj Jain hold 47.5-47.5 percent stake in Sheshasai Technologies. The remaining 5 percent stake is held by Florintree Nextech LLP. On December 20 this year, promoters had allotted 5 per cent stake or 73.8 lakh shares to Florintree Nextech LLP at a price of Rs 339 per share. The total value of the deal was Rs 250.21 crore.
In FY 2023-24, Sheshasai Technologies had a market share of 34.5 percent in credit and debit card issuances in India. It is among the largest manufacturers of check leaves in the country. In the financial year 2021-22 it was 23.7 percent. The company currently has no listed competitors.
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How will the IPO money be used?
Of the money raised by issuing new shares in the IPO, Rs 195.3 crore will be spent on the expansion of existing manufacturing units. Apart from this, Rs 300 crore will be used to repay the loan. The remaining money will remain for general corporate purposes. The total outstanding borrowings of Sheshasai Technologies as of November 15, 2024 stood at Rs 327.2 crore.
Profit increased by 56% in FY24
The company’s financial performance has been strong over the years. Its net profit increased by 56.6 percent to Rs 169.3 crore in the financial year 2023-24. In the previous financial year it was Rs 108 crore. Revenue increased by 36 percent to Rs 1,558.3 crore in FY24. In the April-June 2024 quarter, Sheshasai Technologies’ revenue was Rs 360.5 crore and profit was Rs 40.5 crore.
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