On December 27, Seshaasai Technologies, a payments solution provider based in Mumbai, submitted its preliminary draft documents to SEBI. In the impending IPO, the company is providing both offer-for-sale and a new issue.Seshaasai Technologies Limited, a payments solutions company situated in Mumbai, submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), the market watchdog, on Friday, December 27.
The business offers payment solutions and is involved in the development of technology for contactless payments, smart traceability, and customer communication. According to information gathered from research firm Tracnx, the company also serves the retail, wellness, education, and transportation industries.
Details about Seshaasai Technologies' IPO
By issuing new equity shares with a face value of ₹10 each, the company hopes to generate ₹600 crore through a book-built offering. An offer-for-sale (OFS) component comprising 78,74,015 or 78.74 lakh equity shares will also be part of the public offering. The regulatory filing does not reveal the issue's entire value.
Through the OFS component of the public offering, Pragnyat Pravin Lalwani and Gautam Sampatraj Jain are each selling off close to 39.37 lakh equity shares.
To finance its capital expenditure requirements for the expansion of its current manufacturing operations, the company plans to use ₹195.328 crore. Additionally, Seshaasai Technologies intends to use ₹300 crore of the net proceeds to partially or fully repay some of the company's outstanding debts. It is anticipated that the leftover cash will be utilized for basic business needs.
Link Intime India Pvt. Ltd. is the offer's registrar, and IIFL Capital Services Limited, ICICI Securities Limited, and SBI Capital Markets Limited are the book-running lead managers for the public offering.
According to the draft papers, Seshaasai Technologies' net profit for the quarter that ended on June 30 of the fiscal year 2024–2025 was ₹40.48 crore. During the same time period, the company's operating revenue was ₹360.50 crore.
The company's profits for the fiscal year that ended in March 2024 were ₹169.27 crore, up from ₹108.09 crore in 2023 and ₹37.35 crore in 2022. The company's net value was ₹506.34 crore as of June 2024.
The payments solution provider revealed that as the company serves the banking, financial services, and insurance (BFSI) and other industries, losing any of its major clients or seeing a decline in the money they bring in might negatively impact the company's operations.
0 Comments