Sedemac Mechatronics IPO: A Power Play in Auto Parts

Sedemac Mechatronics Ltd's initial public offering (IPO) achieved 46% subscription on its second day. The IPO, fully an offer-for-sale, valued at up to Rs 6,000 crore, attracted Qualified Institutional Buyers significantly, but had lower participation from retail investors. It concludes on Friday.

On the second day of bidding, Sedemac Mechatronics Ltd's initial public offering (IPO) reached 46% subscription, highlighting mixed investor interest. Qualified Institutional Buyers showed strong engagement, subscribing 1.27 times their quota, yet retail investors subscribed only 9%.

This Rs 1,087-crore IPO is entirely an offer-for-sale from promoters and investors, ensuring Sedemac Mechatronics won't receive any direct proceeds. With a set price band of Rs 1,287 to Rs 1,352 per share, the company's anticipated valuation is close to Rs 6,000 crore.

Serving OEMs across India, the US, and Europe, Sedemac supplies crucial control units to customers like TVS Motor and Bajaj Auto. The IPO closes on Friday, supported by ICICI Securities, Avendus Capital, and Axis Capital as lead managers.

(With inputs from agencies.)