Seshaasai Technologies IPO Opens: 'Subscribe' Says Motilal Oswal — Check Issue And Other Key Details

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Seshaasai Technologies Ltd.'s IPO launched today and will conclude 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.

Strong Financials:

Seshaasai has strong revenue/Ebitda/PAT CAGR of 13%/ 34%/43% respectively over FY23-25. Due to technology driven operations and low operational costs, its FY25 Ebitda/PAT margins are robust at 25%/15%. The company offers healthy return ratios with ROE/ROCE of 41.5%/27.6% as of FY25.

View:

Seshaasai has a leadership position in the regulated payment solutions industry with advanced pan-India manufacturing capabilities and elite client base.

With high industry growth potential, strong financial performance and fair valuation at 30.8x FY25 P/E; offering a PEG ratio of 0.82, we recommend investors to ‘Subscribe’ to the issue.

Risk and Concerns

• The company is highly focused on serving the BFSI industry (84% of FY25 revenue). Any downturn, regulatory change, or shift in technology within this sector could reduce demand for its services.

• The business relies on imported materials (40%) and equipment. Disruptions in global supply chains, currency fluctuations, or trade restrictions could increase costs or delay operations.

• The nature of the business — involving payment systems, data handling, and IT infrastructure — requires strict compliance with regulatory standards and data security norms. Any lapses could lead to penalties, reputational damage, or loss of business.

• There have been some instances of delayed filing with the Registrar of Companies under the Companies Act and RBI in the past which may attract penalties.

• Operating in a fast-evolving tech space, the company must continually innovate to stay competitive. If it fails to adapt to new technologies or market trends, its offerings may become outdated.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.