Sedemac Mechatronics IPO: A High-Octane Start with Strong Institutional Backing

Sedemac Mechatronics Ltd's IPO was oversubscribed 2.68 times, driven by robust demand from institutional buyers. The company raised Rs 326 crore from anchor investors, though it won't receive any IPO proceeds as the offering is entirely an OFS. The IPO valued Sedemac at near Rs 6,000 crore.

The initial public offering of Sedemac Mechatronics Ltd achieved significant attention with a 2.68 times subscription rate on its final bidding day, Friday. According to NSE data, the Rs 1,087-crore IPO witnessed bids for 1,51,11,151 shares, far exceeding the 56,32,899 shares available.

Institutional enthusiasm was a driving factor, with the category for qualified institutional buyers receiving a commendable 8.46 times subscription. Meanwhile, non-institutional investors accounted for 77 percent, and retail individual investors tallied a modest 20 percent subscription. Crucially, Sedemac attracted Rs 326 crore from anchor investors, with shares priced between Rs 1,287 and Rs 1,352. This values the company at approximately Rs 6,000 crore at the upper price spectrum.

This IPO is entirely an offer-for-sale, with promoters Manish Sharma and Ashwini Amit Dixit, along with other selling shareholders, offloading up to 80,43,300 equity shares. Consequently, Sedemac Mechatronics will not retain proceeds from this IPO. Pune-based Sedemac supplies critical electronic control units to OEMs across key markets in India, the United States, and Europe, with prominent clients like TVS Motor Company and Bajaj Auto. ICICI Securities, Avendus Capital, and Axis Capital orchestrated the IPO as lead managers.