The initial public offering (IPO) of Sedemac Mechatronics Ltd, a Pune-based manufacturer of powertrain controls and auto parts, managed to get fully subscribed on Friday, March 6 — the last and final day of bidding — amid strong demand from institutional investors.
The offer was booked 46% at the end of the second day.
According to BSE data, Sedemac Mechatronics IPO attracted bids for 1,51,10,909 shares, against the total offer of 56,32,899 shares, resulting in 2.68 bids.
Breaking down subscription by category, Qualified Institutional Buyers (QIBs) saw the highest bids at 8.46 times bids, while the quota for non-institutional investors was subscribed 77% and Retail Individual Investors (RIIs) segment was booked just 20%. The quota reserved for employees garnered a robust 2.95 times subscription.
Sedemac Mechatronics IPO GMP
The gray market premium (GMP) for Sedemac Mechatronics IPO traded in the red on the final day, reversing sharply from ₹55 on March 4. According to the data from Investorgain.com, Sedemac Mechatronics IPO GMP today was – ₹18, meaning that shares were trading at a discount to the offer price.
At the current GMP, Sedemac Mechatronics IPO listing price could be ₹1334, down 1.33%.
Sedemac Mechatronics IPO details
Ahead of the share sale, the company has already secured ₹326 crore from anchor investors. Sedemac Mechatronics IPO, valued at ₹1,087 crore, opened for bidding on Wednesday. The price band was set at ₹1,287 to ₹1,352 per share, valuing the company at nearly ₹6,000 crore at the upper end.
This IPO is a 100% offer-for-sale (OFS), with up to 80,43,300 equity shares being sold by promoters Manish Sharma and Ashwini Amit Dixit, along with other selling shareholders. Among those offloading stakes are A91 Emerging Fund II LLP, NRJN Family Trust, Xponentia Capital Partners, Mace Pvt Ltd, 360 One Group, and HDFC Life Insurance Company. Since it is a complete OFS, Sedemac Mechatronics will not receive any proceeds from the issue.
Sedemac Mechatronics supplies control-intensive, critical electronic control units (ECUs) to original equipment manufacturers (OEMs) in the mobility and industrial sectors in India, the US, and Europe. Its customer base includes TVS Motor Company, Bajaj Auto, Kirloskar Oil Engines, Briggs & Stratton LLC, and DEIF India.
The shares of Sedemac Mechatronics are slated to list on BSE and NSE next week on March 11.
The IPO is being managed by ICICI Securities, Avendus Capital, and Axis Capital, who are the book-running lead managers for the offer.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.
