SEDEMAC Mechatronics IPO: From issue price to lot size to anchor investors, key things to know about Rs 1,087-crore offer

SEDEMAC Mechatronics IPO News: Pune-based automotive and industrial technology company SEDEMAC Mechatronics is set to launch an initial public offer (IPO) when the market returns to trade on Wednesday after a mid-week holiday for Holi. Here are 10 things to know about the IPO, which comprises an offer for sale (OFS) worth Ra 1,087 crore.

Important Dates: The IPO will be available for bidding for three trading days, from 10 am to 5 am, from March 4 to March 6. The stock is set to list on stock exchanges BSE and NSE tentatively on March 11. The allotment is likely to be finalised on March 9. Issue Price: Under the IPO, the company's shares will be available for bidding in the range of Rs 1,287-1,352 per share. Lot Size: Potential investors will be able to bid for 11 shares at a time. In other words, investors will need up to Rs 14,872 to participate in the IPO. Offer Type: The IPO comprises an OFS, which means none of the proceeds will go to the company. They will go to its existing shareholders. Investor Reservation: While up to 50 per cent of the issue is reserved for qualified institutional buyers (QIB), portions of at least 35 per cent and 15 per cent are set aside for retail (RIIs) and non-institutional investors (NIIs), respectively. Employee Discount: A discount of Rs 128 will be available to the company's staff. Book-running Lead Manager (BRLM): ICICI Securities is the book running lead manager for the public offer. Registrar: MUFG Intime India is the registrar for the issue. Anchor Investors: Prior to the launch of the IPO, the company raised Rs 326 crore from anchor investors, including HDFC Bank, SBI, ICICI Prudential, Abu Dhabi Investment and Nippon Life. Company Profile: Incorporated in 2007, SEDEMAC Mechatronics specialises in control electronics. It designs and manufactures a range of automotive and industrial products, including powertrain controllers, motor control products, sensorless commutation (SLC)-based integrated starter generators (ISG), ECUs and electric machines. Here are answers to frequently asked questions (FAQs) about this issue:

What is the price band for the IPO? The issue price has been fixed in the range of Rs 1,287 to Rs 1,352 per share. What is the investment required? Investors can bid in a lot size of 11 shares. At the upper price band, this translates to an investment of Rs 14,872. What is the size and structure of the IPO? The public issue is entirely an offer for sale worth Rs 1,087 crore. This means the proceeds will go to existing shareholders, not the company. How is the IPO quota divided among investors? While half of the issue is reserved for qualified institutional buyers (QIBs), portions of at least 35 per cent and 15 per cent are set aside for to retail individual investors (RIIs) and non-institutional investors (NIIs). Is there any employee discount? Yes. Eligible employees are being offered a discount of Rs 128 per share. Did the company raise funds from anchor investors? Yes.