SEDEMAC Mechatronics IPO GMP: The public issue of SEDEMAC Mechatronics, which opened for subscription on March 4, will close on March 6. The company has set the price band at ₹1,287 to ₹Rs 1,352 per share. At the upper end of the band, the offering places the company’s valuation at nearly ₹6,000 crores. Till now, the issue has witnessed weak subscription and is not fully subscribed yet.
The company is expected to finalize the basis of allotment on March 9. Refunds to unsuccessful bidders are likely to begin on March 10, with shares credited to successful applicants’ demat accounts the same day. SEDEMAC Mechatronics shares are tentatively scheduled to list on the BSE and NSE on March 11.
SEDEMAC Mechatronics IPO GMP Today
Early signals from the gray market suggest some enthusiasm among unofficial traders. The gray market premium (GMP) is currently ₹50, indicating a listing price of ₹1402, up 3.7% from the IPO price of ₹1352.
Gray market premium reflects the difference between the IPO price and the unofficial trading price in the gray market before listing, and is often used as a sentiment indicator.
SEDEMAC Mechatronics IPO Subscription Status
Demand for the issue remained moderate by 10:54 am on Day 2, with the IPO subscribed 0.28 times overall.
Retail investors had applied for 0.05 times the shares reserved for them, while the non-institutional investor segment saw subscriptions of 0.04 times. The QIB category recorded bids worth 0.87 times the allocated shares.
The employee quota saw stronger participation compared with other segments, with subscriptions reaching 0.83 times.
In total, the issue received bids for 15.88 lakh shares, compared with 56.32 lakh shares available for subscription.
SEDEMAC Mechatronics IPO Review
Swastika Investmart | Rating: Avoid
Swastika Investmart pointed out that although the company has reported a sharp improvement in profitability, the growth needs to be observed over a longer period.
According to the brokerage, the company’s profit after tax expanded nearly eight times in FY25, but this growth partly reflects the impact of a weak base in FY24. The brokerage believes the earnings trajectory needs confirmation over the next two to three quarters.
“At 127 times trailing P/E, the IPO leaves no room for execution missteps. Growth expectations are entirely priced in at the upper band. Considering the stretched valuation and need for earnings consistency, conservative investors may prefer to avoid this IPO for now,” it said.
Anand Rathi Share & Stock Brokers | Rating: Subscribe for long-term
Anand Rathi highlighted that SEDEMAC operates in technology-intensive segments of the mobility and industrial markets.
The company offers a diversified range of products such as 2W and 3W electronic control units (ECUs), EV motor controllers and generator controllers, enabling it to participate in large-scale vehicle platforms.
“The company aims to build a strong market presence by offering a broad range of critical, control-intensive products, rather than limiting itself to a narrow product set. Considering these factors, the IPO appears fully valued and is rated ‘subscribe for long term’ tag,” the brokerage said.
Ventura Securities | Rating:Subscribe
Ventura Securities noted that SEDEMAC’s operating model involves working closely with OEM clients throughout the entire product lifecycle, from concept development to commercialization.
The company undertakes end-to-end ECU development, including embedded software programming, circuit design, calibration, testing and validation.
“Its solutions are typically integrated into customer vehicle platforms under long-term supply arrangements, resulting in recurring revenues across product life cycles,” Ventura said.
However, Ventura also highlighted revenue concentration, technological disruption risk and margin sensitivity linked to product mix as potential challenges for the business.
SEDEMAC Mechatronics IPO Details
Unlike many IPOs that raise fresh capital, this issue is structured entirely as an offer for sale (OFS). A total of 80,43,300 equity shares are being sold by existing shareholders. Promoters Manish Sharma and Ashwini Amit Dixit are among those offloading stakes through the public issue.
Several institutional investors are also participating in the share sale. These include A91 Emerging Fund II LLP, NRJN Family Trust, Mumbai-based Xponentia Capital Partners, Mace Pvt Ltd, the 360 One Group, and HDFC Life Insurance Company. Because the IPO consists solely of secondary share sales, SEDEMAC Mechatronics itself will not receive any proceeds from the offering.
Ahead of the issue launch, the company secured ₹326 crore from anchor investors. Major participants in the anchor round included Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Tata Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, and 3PIM India Equity (IFSC) Fund, according to details shared on the BSE website.
For retail investors, the minimum application size is 32 shares. At the upper price band of ₹1,352 per share, the minimum investment works out to ₹43,264.
The IPO allocation structure earmarks up to 50% of shares for Qualified Institutional Buyers (QIBs), while at least 15% is reserved for Non-Institutional Investors (NIIs). Retail investors will receive not less than 35% of the issue, while employees have been allocated shares worth up to ₹1 crore.
ICICI Securities, Avendus Capital and Axis Capital are acting as the book-running lead managers, while MUFG Intime India Pvt Ltd is the registrar to the issue.
About SEDEMAC Mechatronics
Headquartered in Pune, SEDEMAC Mechatronics manufactures and supplies control-intensive electronic control units (ECUs) to original equipment manufacturers in mobility and industrial markets across India, the US and Europe.
The company develops sensor-less commutation-based integrated starter generator ECUs used in two-wheelers and three-wheelers powered by internal combustion engines.
Its client list includes TVS Motor Company, Bajaj Auto, Kirloskar Oil Engines, Briggs and Stratton LLC and DEIF India.
Financially, the company reported revenue of ₹217.35 crore and PAT of ₹17.07 crore as of June 30, 2025. For FY25, SEDEMAC Mechatronics recorded revenue of ₹658.36 crore and profit after tax of ₹47.04 crore.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
