Sedemac Mechatronics IPO Subscribed 27% on Day 1

New Delhi, Mar 4 (PTI) The initial public offer of Sedemac Mechatronics Ltd, a powertrain controls and auto parts manufacturer, received 27 per cent subscription on the first day of bidding on Wednesday.

The IPO got bids for 15,00,510 shares against 56,32,899 shares on offer, as per NSE data.

The category for Qualified Institutional Buyers (QIBs) got subscribed 87 per cent, while Retail Individual Investors (RIIs) portion fetched 3 per cent subscription. The category for non-institutional investors received 1 per cent subscription.

Sedemac Mechatronics has garnered Rs 326 crore from anchor investors.

The company's Rs 1,087-crore initial share-sale will conclude on March 6. The price band has been fixed at Rs 1,287 to Rs 1,352 per share, valuing the company at close to Rs 6,000 crore at the higher end.

The IPO is entirely an offer for sale (OFS) of up to 80,43,300 equity shares by promoters Manish Sharma and Ashwini Amit Dixit, and investors selling shareholders.


Under the OFS, A91 Emerging Fund II LLP, NRJN Family Trust, Mumbai-based Xponentia Capital Partners, Mace Pvt Ltd, 360 One group, and HDFC Life Insurance Company were the other investors who will offload their stakes in the company.

Since the public issue is completely an OFS, Sedemac Mechatronics will not receive any proceeds from the IPO.

Pune-based Sedemac Mechatronics is a supplier of control-intensive, critical-to-the-application electronic control units (ECU) to original equipment manufacturers (OEM) in the mobility and industrial markets in India, the US, and Europe.

It develops, designs and manufactures sensor-less commutation-based integrated starter generators ECUs for two-wheeler and three-wheeler internal combustion engine-powered vehicles.

The company's customers included TVS Motor Company, Bajaj Auto, Kirloskar Oil Engines, Briggs and Stratton LLC, and DEIF India.

ICICI Securities, Avendus Capital and Axis Capital are the book running lead managers for the IPO.