Mathew Cyriac's Florintree-backed Seshaasai Technologies files IPO papers with fresh issue of Rs 600 crore

Seshaasai Technologies IPO

Mumbai-based Seshaasai Technologies, which is backed by ex-Blackstone India executive Mathew Cyriac-owned Florintree Nextech, plans to approach primary market for fund raising via an IPO, as it has filed preliminary papers with the capital markets regulator SEBI on December 27.

The IPO is a combination of fresh issuance of equity shares worth Rs 600 crore, and an offer-for-sale of 78,74,015 equity shares by promoters Pragnyat Pravin Lalwani, and Gautam Sampatraj Jain, as per the draft red herring prospectus.

The company that provides payment, communication and fulfilment, and IoT solutions primarily to the banking, financial services and insurance (BFSI) industry, may also raise Rs 120 crore before the IPO launch. If such pre-IPO placement is undertaken, the said amount will be reduced from the fresh issue.

Promoters Pragnyat Pravin Lalwani, and Gautam Sampatraj Jain own 47.5 percent stake each in Seshaasai Technologies, and the remainder 5 percent stake is held by Cyriac-owned Florintree Nextech LLP.

The promoters on December 20 this year had allotted 5 percent stake (representing 73.8 lakh shares) to Florintree Nextech LLP, at a price of Rs 339 per share, for Rs 250.21 crore.

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Earlier, Mathew Cyriac had clocked handsome returns from the IPOs of Data Patterns and MTAR Technologies.

At the said investment price, Seshaasai, one of the top two payments card manufacturers in India with a market share of 34.5 percent in FY24 for credit and debit cards issuance in India improving from 23.7 percent in FY22, is valued at more than Rs 5,000 crore.

There is no comparable peer among the listed entities for the company.

Seshaasai, one of the largest manufacturers of cheque leaves in India, will spend Rs 195.3 crore out of the net fresh issue proceeds for the expansion of existing manufacturing units. Further, Rs 300 crore will be utilised for repaying debt, and the remainder for general corporate purposes.

Post issue, there would be significant reduction in company's debt as its total outstanding borrowings amounted to Rs 327.2 crore till November 15, 2024.

The financial performance of the company in the past years has been strong as the net profit in the fiscal 2024 grew by 56.6 percent to Rs 169.3 crore, up from Rs 108 crore in the previous fiscal, and revenue increased by 36 percent to Rs 1,558.3 crore in the same period. Profit in the June 2024 quarter stood at Rs 40.5 crore on revenue of Rs 360.5 crore.

IIFL Capital Services, ICICI Securities, and SBI Capital Markets are appointed as the book running lead managers to the issue.