Sedemac Mechatronics to Launch Rs 1,087 Crore Initial Public Offering on March 4

Sedemac Mechatronics Files RHP for Maiden Public Issue

Key Highlights:

• Sedemac Mechatronics, a manufacturer of control-intensive products for the automotive and genset segments, has filed its Red Herring Prospectus (RHP) with the Registrar of Companies on February 25.
• The company is set to launch its Rs 1,087-crore maiden public issue on March 4.

IPO Details:

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• The one-day IPO anchor book will open for institutional investors on March 2, while the offer will close for the public on March 6.
• The company will finalise the IPO share allotment by March 9, and its equity shares will be available for trading on the bourses effective March 11.
• The price band for the offer has been fixed at Rs 1,287-1,352 per share, valuing the company at Rs 5,970.6 crore.

IPO Structure:

• The initial public offering (IPO) is entirely an offer for sale (OFS) of 80.43 lakh equity shares, with no fresh issue component.
• Promoters Manish Sharma and Ashwini Amit Dixit, along with seven investors, will be the selling shareholders in the OFS.
• The company has reserved shares worth Rs 1 crore for its employees, who will receive them at a discount of Rs 128 per share to the final offer price.

Investor Details:

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• Investors can bid for a minimum of 11 equity shares and in multiples of 11 shares thereafter.
• The minimum investment for retail investors in the IPO would be Rs 14,872, while the maximum investment would be Rs 1,93,336.

Market Details:

• Half of the net offer size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.
• Sedemac Mechatronics is a market leader in India for genset controllers, with a market share of over 75 percent.
• The company claims to be the first in India to develop sensorless commutation-based integrated starter generator ECUs for two- and three-wheeler internal combustion engine (ICE)-powered vehicles.