Big step of leading company in the field of banking and financial services

Mumbai-based Seshaasai Technologies plans to raise funds through its IPO (Initial Public Offering). For this, the company filed a draft red herring prospectus (DRHP) with the capital market regulator SEBI on 27 December 2024. In this IPO, new shares worth Rs 600 crore will be issued and there will be an offer for sale (OFS) of 78,74,015 equity shares.

Florintree Nextech LLP, which is backed by former Blackstone India executive Matthew Cyriac, is playing a major role among the investors in the company.

Company’s business and market share

Seshaasai Technologies primarily caters to the Banking, Financial Services and Insurance (BFSI) sector. It has expertise in the following areas:

• Payment Solutions
• Communication and fulfillment services
• IoT (Internet of Things) based solutions

market share in india

• The company’s market share in credit and debit card issuances stood at 34.5% in FY24.
• The company is also one of the leading companies in the country in check leaf manufacturing.
• The share was 23.7% in FY22, which increased to 34.5% in FY24.

Plan to raise funds before IPO

Seshaasai Technologies can raise up to Rs 120 crore before IPO through pre-IPO placement. If this placement happens, the size of new shares in the IPO may be reduced.

promoters’ stake

• Promoters Pragyanyat Praveen Lalwani and Gautam Sampatraj Jain hold 47.5% – 47.5% stake in the company.
• The remaining 5% stake is held by Florintree Nextech LLP.

recent deals

• On December 20, 2024, promoters allotted 73.8 lakh shares to Florintree Nextech LLP at the rate of Rs 339 per share.
• The total value of this deal was Rs 250.21 crore.

Use of funds raised from IPO

The funds raised from the IPO will be used for the following purposes:

1. Expansion of Manufacturing Units:
   • Rs 195.3 crore will be spent for expansion of existing units.
2. Paying off debt:
   • Rs 300 crore will be used to reduce the outstanding debt of the company.
   • As of November 15, 2024, the company had a total debt of Rs 327.2 crore.
3. General corporate needs:
   • The remaining funds will be used for other corporate purposes.

financial performance

Seshaasai Technologies has had a strong financial performance:

• Net profit in FY24:
  • Rs 169.3 crore with a growth of 56.6%.
  • This profit was Rs 108 crore in FY23.
• Revenue in FY24:
  • Rs 1,558.3 ​​crore with a growth of 36%.
• April-June 2024 quarter:
  • Revenue Rs 360.5 crore.
  • Net profit Rs 40.5 crore.

Company’s Unique Position

• No listed competitor:
  • Currently, Seshaasai Technologies has no direct listed competitors.
• The company holds a strong position in the BFSI sector due to its technical services and innovative solutions.