Upcoming IPO: Payments solution provider Seshaasai Technologies files DRHP with SEBI to raise funds via public issue

Seshaasai Technologies Limited, a Mumbai-based payments solutions provider, filed its draft red herring prospectus (DRHP) with the markets regulator, the Securities and Exchange Board of India (SEBI), on Friday, December 27.

The company is a payments solution provider that develops technology for contactless payments, customer communication and smart traceability. The firm also caters to education, wellness, retail and transport sectors, according to data collected from research agency Tracnx. 

Seshaasai Technologies IPO details

The company, through a book-built issue, aims to raise ₹600 crore from a fresh issuance of equity shares with a face value of ₹10 per share. The public offer will also include an offer-for-sale (OFS) component with 78,74,015 or 78.74 lakh equity shares. The total amount of the issue is undisclosed in the regulatory filing.

Pragnyat Pravin Lalwani and Gautam Sampatraj Jain are each selling off nearly 39.37 lakh equity shares via the public issue's OFS component. 

The company aims to use ₹195.328 crore to fund its capital expenditure needs for the expansion of existing manufacturing units. Seshaasai Technologies also plans to use ₹300 crore of the net proceeds to repay or prepay, in parts or in full, certain outstanding borrowings. The remaining funds are expected to be used for general corporate purposes.

IIFL Capital Services Limited, ICICI Securities Limited and SBI Capital Markets Limited are the book-running lead managers for the public issue, while Link Intime India is the registrar. 

About the company

Seshaasai Technologies made a net profit of ₹40.48 crore as of the quarter ended June 30 in the financial year 2024-25, according to the draft papers. The company's revenue from operations was ₹360.50 crore for the same period.

For the financial year ended March 2024, the company's profits were at ₹169.27 crore, compared to ₹108.09 crore in 2023 and ₹37.35 crore in 2022. As of June 2024, the company's net worth stood at ₹506.34 crore.

The company caters to banking, financial services and insurance (BFSI) and other sectors. Loss of any of the key customers, or reduction in revenue earned from these key customers may have an adverse effect on the company's business, the payments solution provider disclosed.

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