Seshaasai Technologies IPO Opens: 'Subscribe For Long-Term' Says Geojit — Check Issue Details

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Geojit Report

Seshaasai Technologies Ltd.'s IPO launched its initial public offering on Tuesday, Sept. 23, and will close on Thursday, Sept. 25. A tech-driven, multi-location solutions provider offering payments, communications, and fulfillment services primarily to the BFSI sector has fixed the price band between Rs 402 to Rs 423 per equity share.

Investors can place bids starting from a minimum of 35 shares and in multiples thereafter.

The Rs 813.07-crore IPO comprises of a fresh issue of 1.13 crore shares worth Rs 480 crore and an offer for sale of 0.79 crore shares worth Rs 333.07 crore.

IIFL Capital Services Ltd. is the book-running lead manager while MUFG Intime India Pvt. Ltd. is the registrar for this IPO.

The shares will be listed on both the National Stock Exchange and the BSE.

Purpose of IPO

Net proceeds will be used to partially fund a 1.2 GW TopCon solar cell and module manufacturing facility in Madhya Pradesh through its subsidiary, Kartik Solarworld Pvt Ltd. (Rs 420 crore).

Key Risks

Over 79% of FY25 revenue came from a single client, SJVN Green Energy Ltd.

Key strategies:

• Invest in the manufacturing capabilities for solar modules, BESS and solar PV TopCon cell.

• Grow the customer base by diversifying into new geographies and maintain relationships with the key customers and other stakeholders

• Exploring opportunities to expand the portfolio and scale the operations.

• Establish strong research and development capabilities to drive innovation and technological advancement.

View

At the upper price band of Rs 351, Seshaasai Technologies is valued at 39× FY25 PE, which appears reasonable given its robust financial performance.

While relatively smaller size of revenue, the company’s asset-light model, low leverage, and consistent profitability underscore its operational strength.

With backward integration, strategic expansion plans, and a focused EPC approach, Seshaasai Technologies is well-positioned in India’s solar sector.

Hence, we recommend a ‘Subscribe’ rating for long-term investors.

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