Seshaasai Technologies IPO – Debt Repayment, Expansion Plans, and What It Means for Investors

Seshaasai Technologies Limited, one of India’s top two payment card manufacturers, has launched its IPO between September 23-25, 2025. The issue size is ₹813.07 crore with a price band of ₹402–423 per share, and a lot size of 35 shares. The IPO is a mix of fresh issue and Offer for Sale.

As of today, the stock is trading at a GMP of ₹88, which means the IPO is enjoying about 20.8% listing gain expectations in the unofficial market. This shows strong initial demand, but GMP is volatile and not always a sure indicator of actual listing performance.

In this blog, we will break down Seshaasai’s IPO - from its business model to why it needs IPO money, its strengths and risks, valuation, peer comparison, and an analyst view to help you understand whether this IPO fits your portfolio or not.

IPO Overview

• IPO Date: September 23 to September 25, 2025
• Total Issue Size: ₹813.07 crore
• Price Band: ₹402 to ₹423 per share
• Lot Size: 35 Shares
• Tentative Allotment Date: September 26, 2025
• Listing Date: September 30, 2025 (Tentative)
• GMP: The GMP for Seshaasai Technologies IPO is ₹88, reflecting a 20.8% gain over the issue price, according to Chittorgarh.com (as of September 23).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

What Does Seshaasai Technologies Do?

Seshaasai Technologies is a tech-enabled solutions company that works mainly with banks and financial institutions. Its core business is:

• Payment cards: It makes debit and credit cards for banks. In FY25, it held 31.9% of the market, up from 25% two years back.
• Smart tags (RFID): It makes electronic tags that help in tracking goods and assets.
• Customer communication: It helps banks and clients send customized communication (statements, cheques, policy documents).

The company is like a behind-the-scenes player powering the financial system - cards in your wallet, cheque books, and even the smart tags stuck to packages might be made by this company.

Objectives of the IPO

The IPO money will be used for three main purposes:

• Plant & equipment expansion: ₹197.91 crore to upgrade factories at Mumbai, Nagpur, Okhla, Kundli, and Bengaluru. This includes machines for new card types like biodegradable, metal, and biometric cards.
• Debt repayment: ₹229.99 crore to repay existing loans. The company had borrowings of ₹336.75 crore as of June 2025.
• General corporate use: Balance funds for working capital, raw materials, employee expenses, and other business needs.

Strengths:

• Market leader: Second-largest card maker in India with 31.9% market share.
• Strong profitability: PAT margin improved to 15.1% in FY25, meaning it earned ₹15.1 on every ₹100 revenue.
• High customer stickiness: 75.5% of revenue comes from long-term relationships (average banking customer association is 7.3 years).
• Scale: 24 factories across India with the ability to make 4.7 lakh cards every day.
• Growth areas: Expanding rapidly in IoT tagging, where RFID tags increased from 4.8 million in FY23 to 322.8 million in FY25.

Risks:

• Over-dependent on BFSI: 83.8% of revenue is from banks; any slowdown in banking demand or RBI rules can hit growth.
• Customer concentration: Top 10 customers contribute 65.7% of revenue; the largest client alone is 17%. Losing one customer can impact profits.
• Working capital stretch: Net working capital days worsened to 95 days in FY25 (from 62), meaning money is stuck longer in operations.
• Debt: While reducing, borrowings are still significant compared to peers.
• Sensitive data risk: Handles consumer financial data; any hacks or breaches can cause severe reputation and legal damage.

For detailed information, visit Seshaasai Technologies’ IPO page.

Peer Comparison

While there are no listed peers in India, we can still compare with unlisted domestic and global companies.

• Revenue (FY25): ₹1,473.6 crore for Seshaasai vs ₹1,029 crore for Manipal Payments (FY24) and ₹808 crore for G+D India (FY24).
• Profit (FY25): ₹222.3 crore, higher than MPISL’s ₹182.9 crore (FY24).
• RoE: 33.2%, solid but lower than global peer G+D at 46%. In simple terms, for every ₹100 of shareholder equity, it generated ₹33 in profit.
• Debt: Net Debt-to-Equity ratio at 0.37 vs MPISL’s 0.01, showing Seshaasai carries more leverage.
• Growth: Revenue grew 35.9% in FY24, which is broadly in line with Indian peers but slower than global giants.

IPO Valuation

At the upper price band of ₹423 per share, Seshaasai is asking for a post-IPO market cap of ₹6,844 crore.

• P/E ratio: 30.79x on FY25 earnings. This means investors are paying ₹30.79 for every ₹1 profit made in FY25.
• EV/EBITDA: 18.54x, which looks high but reflects premium positioning.
• Pre-IPO share transactions happened at ₹339 in late 2024 and ₹423 in August 2025 (Pre-IPO placement). So, the IPO pricing is in line with recent institutional buying.

The valuation isn’t cheap, but the company is showing strong earnings growth (PAT CAGR of 43.4% between FY23-25). The price is demanding, but growth visibility makes it somewhat justified.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who’s Making Money Via the IPO?

In Seshaasai Technologies’ IPO, both promoters are partially offloading their stake through the Offer for Sale route, together cashing out ₹333 crore. Pragnyat Pravin Lalwani is selling 39.37 lakh shares worth ₹166.5 crore, while Gautam Sampatraj Jain is exiting the same number of shares for an equal amount of ₹166.5 crore. As promoters, they have been associated with the company for over three decades, and their historical cost of acquisition was just ₹7.72 per share, meaning these exits translate into substantial paper gains - an implied return multiple of over 54 times. Importantly, since these are promoter exits, this capital does not flow into business expansion but is a way for the founding shareholders to monetize part of their long-held holdings. Investors should note this distinction - the OFS proceeds do not strengthen company finances, whereas the fresh issue portion of the IPO is what genuinely contributes to funding growth, debt repayment, and capacity expansion.

The People Behind Seshaasai Technologies

The company is led by Pragnyat Pravin Lalwani (CMD) and Gautam Sampatraj Jain (Whole-Time Director), both with over 30 years of experience in payment solutions and BFSI services. Lalwani is recognized as the strategy head and solutions architect, while Jain focuses on finance and operations. Together, they hold more than 93% pre-IPO equity.

What stands out is their long-term vision in scaling from cheque printing to digital payments infrastructure. They started with traditional products like cheques but pivoted early into cards, smart tags, and now IoT. Under their leadership, Seshaasai has grown into a critical player in India’s payments ecosystem. Notably, Lalwani still doesn’t hold a passport, as per the prospectus - an unusual trivia point in a globalized industry.

The larger leadership team includes CFO Pawan Kumar Pillalamarri (a CA with 13 years of experience), and key tech and operations heads like Sandeep Khurana (IIT-K alumnus, IT Head) and Sairam Raghavan (IoT Operations).

Industry Outlook

India’s payment card and digital solutions industry is set to grow strongly. The Indian payment card market (₹3,080.4 crore in 2024) is projected to almost double to ₹6,168.4 crore by 2030 at a 12.3% CAGR. With 1.4 billion cards in circulation (2024) expected to reach 2.2 billion (2030), there is a large, visible demand.

Add to this the growing role of IoT and RFID tagging (global RFID market CAGR 11.9%), and the industry outlook remains expansionary. However, it’s a space requiring strict compliance, cybersecurity, and constant innovation.

Analyst View

Seshaasai Technologies has a strong business moat in card manufacturing with over 30% market share and premium customers. Profitability has improved significantly, the balance sheet is getting lighter with debt repayment, and IoT scaling gives it new growth lines.

On the flip side, customer concentration, BFSI reliance, and valuation multiples make it a play where growth has to remain consistent for returns to work out. At a P/E of 30x, the IPO is not cheap, but if the company maintains its 40% profit CAGR and leverages the growing digital payments and IoT market, it could deliver. Investors should weigh growth visibility against risks before making a decision.

How to Apply for an IPO on INDmoney?

1. Download the INDmoney app and complete your KYC.
2. Go to INDstocks → IPO, or just search “IPO”.
3. Tap on an IPO from the list of live IPOs.
4. View key details like price band, lot size, and dates.
5. Tap Apply Now and choose the number of lots.
6. Use INDpay UPI for instant mandate tracking.
7. Your funds will be blocked until the share allotment is finalized.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Seshaasai Technologies' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.