SEDEMAC Mechatronics IPO Opens: 10 key things to know before applying

Pune-based automotive and industrial technology firm SEDEMAC Mechatronics is set to launch its initial public offering (IPO) as markets reopen after the Holi holiday. The public issue, entirely an offer for sale (OFS), will open for subscription on March 4 and close on March 6.

Here’s a detailed look at the company and its IPO:

SEDEMAC Mechatronics IPO Details: 10 key things to know

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1) Issue size and structure

The IPO is entirely an offer for sale worth Rs 1,087 crore. Since it is an OFS, the proceeds will go to existing shareholders and not to the company.

2) Important dates

• IPO opens: March 4
• IPO closes: March 6

Allotment finalisation: Tentatively on March 9

Listing date: Likely on March 11 on BSE and NSE

3) Price band

The IPO shares will be available in a price band of Rs 1,287 to Rs 1,352 per share.

4) Lot size and investment

Investors can bid in lots of 11 shares. At the upper price band of Rs 1,352 per share, the minimum investment required is Rs 14,872.

5) Investor reservation

• 50 per cent reserved for Qualified Institutional Buyers (QIBs)
• At least 35 per cent reserved for Retail Individual Investors (RIIs)
• At least 15 per cent reserved for Non-Institutional Investors (NIIs)

6) Employee discount

Eligible employees are being offered a discount of Rs 128 per share.

7) Anchor investors

Ahead of the IPO launch, the company raised Rs 326 crore from anchor investors. These include HDFC Bank, SBI, ICICI Prudential, Abu Dhabi Investment, and Nippon Life.

8) Lead manager and registrar

• Book Running Lead Manager (BRLM): ICICI Securities
• Registrar: MUFG Intime India

9) About the Company

Incorporated in 2007, SEDEMAC Mechatronics specialises in control electronics for automotive and industrial applications. The company supplies essential electronic control units (ECUs) to original equipment manufacturers (OEMs) across India, the United States, and Europe.

It designs and manufactures a wide range of products, including:

• Powertrain controllers
• Motor control products
• Sensorless commutation (SLC)-based integrated starter generators (ISG)
• Electronic control units (ECUs)
• Electric machines

The company primarily caters to two-wheelers, three-wheelers and internal combustion engine (ICE) vehicles, offering sensor-less computation-based integrated starter generator (ISG) ECUs.

The company is led by Managing Director Shashikant Suryanarayan.

10) What investors should know

Since the IPO is entirely an offer for sale, the company itself will not receive any funds from the issue. Investors should evaluate the company’s financials and its growth potential in the automotive electronics sector, and its domestic and international control electronics demand before making an investment decision.

SEDEMAC Mechatronics operates across three continents, which include India, America and Europe, to establish itself as a leading manufacturer of control electronics and integrated starter generator systems used in automotive applications.