Sedemac Mechatronics shares expected to list with modest gains; analysts recommend partial profit booking

Sedemac Mechatronics shares expected to list with modest gains on March 11.

• Sedemac Mechatronics shares likely to list with modest gains.
• Shares command a grey market premium of up to 5 percent.
• Analysts suggest partial profit booking on listing day.

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Shares of Sedemac Mechatronics are expected to list with modest gains on Wednesday after the company’s initial public offering (IPO) was subscribed nearly three times during March 4–6. The Rs 1,087-crore issue was offered in a price band of Rs 1,287–1,352 per share.

According to platforms tracking grey market activity, the company’s shares are commanding a grey market premium (GMP) of up to about 5 percent. Investorgain has quoted a GMP of Rs 70 per share, indicating a potential listing gain of about 5.18 percent. IPO Watch has indicated a GMP of around 3.55 percent.

Analysts have recommended partial profit booking on the day of listing.

Narendra Solanki, Head of Fundamental Research – Investment Services at Anand Rathi Shares and Stock Brokers, said investors with a long-term perspective may continue to hold the stock, while others could consider partial profit booking and retain the remaining position for the long term.

Sedemac Mechatronics, incorporated in 2007 and headquartered in Pune, is a technology-focused automotive electronics company. It specialises in engine control units (ECUs), integrated starter generator (ISG) controllers and ISG+EFI integrated ECUs, primarily for the two-wheeler and three-wheeler segments.

The company has developed proprietary sensor-less motor control technology aimed at improving efficiency, reliability and cost competitiveness, and has established relationships with original equipment manufacturers (OEMs).

At the upper end of the price band, the company is valued at 126.4 times its FY25 earnings and 62.5 times its FY26 earnings (annualised), implying a post-issue market capitalisation of Rs 59,706 million and an EV/EBITDA multiple of 49.7 times.

According to Solanki, the company focuses on scalable technologies for global mobility and industrial markets and has a portfolio that includes 2W and 3W ECUs, EV motor controllers and genset controllers.

Mahesh M. Ojha, Vice-President – Research and Business Development at Kantilal Chhaganlal Securities Pvt Ltd, said the company is the first in India to develop, design and manufacture sensorless commutation-based integrated starter generator ECUs for two- and three-wheeler internal combustion engine vehicles.

He said the company held around 35 percent market share in the domestic ISG ECU market for two- and three-wheelers in terms of volume and was among the top four players for the nine months ended December 31, 2025.

Ojha added that TVS Motor is the anchor client for the company, contributing about 81 per cent of its revenue, while the top three customers account for around 88 per cent.

He noted that the listing could remain muted in the current market conditions. Investors with a medium- to long-term horizon may continue to hold the stock, while fresh investors may wait for price stabilisation after listing.

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