SEDEMAC Mechatronics IPO Day 1

Company Overview

SEDEMAC Mechatronics, a Pune-based manufacturer of powertrain controls and auto components, began its public subscription on March 4 and will conclude on March 6. The company develops, designs, and manufactures electronic control units (ECU) for two-wheeler and three-wheeler internal combustion engine-powered vehicles.

IPO Details

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• Price Band: ₹1,287 - ₹1,352
• Company Value: ₹6,000 crore (at upper limit)
• Anchor Investors: Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Tata Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, and 3PIM India Equity (IFSC) Fund
• Revenue: ₹217.35 crore (as of June 30, 2025)
• Profit After Tax (PAT): ₹17.07 crore (as of June 30, 2025)
• Fiscal Year 2025: Revenue of ₹658.36 crore and PAT of ₹47.04 crore

Reservation of Shares

• Qualified Institutional Buyers (QIB): Not more than 50% of shares reserved
• Non-Institutional Investors (NII): Not less than 15% of shares reserved
• Retail Investors: Not less than 35% of shares reserved
• Employees: Reserved equity shares aggregating up to ₹1 crore

Listing and Refunds

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• Basis of Allotment: Finalized on Monday, March 9
• Refunds: Initiated on Tuesday, March 10
• Shares Credited to Demat Account: Tuesday, March 10
• Listing on BSE and NSE: Wednesday, March 11

Grey Market Premium (GMP)

• Current GMP: -17
• Estimated Listing Price: ₹1,335 apiece (1.26% lower than IPO price)

IPO Structure

• Offer for Sale (OFS): Up to 80,43,300 equity shares being sold by promoters and other selling shareholders
• Book-Running Lead Managers: ICICI Securities, Avendus Capital, and Axis Capital
• Registrar: MUFG Intime India Pvt. Ltd

Brokerage Recommendations

• SBI Securities: "Subscribe" for long-term gains
• Anand Rathi Research: "Subscribe – Long Term" due to robust market presence and essential products