Seshaasai Technologies Limited IPO

25 Sep 2025 , 08:52 AM

Seshaasai Technologies Limited is a Mumbai-based company that has evolved from a traditional security‑and‑variable‑data printing business into a diversified technology-enabled services group.  The firm’s core activities now include the design, manufacture, and supply of payment cards, secure communications and smart‑payment solutions (contact‑less cards, QR-based payment kits, RFID-enabled asset‑tracking) together with a growing information‑technology services platform operated through its wholly‑owned subsidiary, Rite Infotech Private Limited.

Offer Details of the IPO

• Total Offer Size: The issue comprises a fresh issue of equity shares worth up to INR 480 crore together with an Offer for Sale of upto INR 333 crore. The aggregate gross offer, amounts to upto INR813 crore.
• The shares being sold by existing shareholders are held by:
• Pragnyat Pravin Lalwani (Promoter) – 3,937,008 shares
• Gautam Sampatraj Jain (Promoter) – 3,937,007 shares

Price Band: INR 402 to INR 423 per Equity Share

Book‑Running Lead Managers (BRLMs)

• IIFL Capital Services Limited
• ICICI Securities Limited
• SBI Capital Markets Limited

Industry Overview – Secure‑Printing & Payment‑Card Manufacturing

Seshaasai Technologies Limited operates in the secure‑printing and payment‑card ecosystem – a niche but rapidly expanding segment of the broader printing, financial‑services‑technology (FinTech), and identity‑solution markets in India. Core activities of the industry include  production of high‑security documents (cheques, demand‑drafts, MICR instruments), variable‑data printing of forms and stationery, and end-to-end personalization of payment cards (credit, debit, prepaid, metal, biometric, RFID-enabled, and contact‑less cards). The sector also provides related IT-enabled services (through its subsidiary Rite Infotech) such as RFID-based asset‑tracking, QR‑payment solutions, and secure‑communication platforms for banks and other financial institutions.

The secure‑printing & payment‑card industry in India is a growing industry, underpinned by the nation’s rapid shift to cash‑less payments and heightened security standards. Seshaasai Technologies, with its diversified product mix, multi-site certifications, and a growing share in the card‑issuance market, is well-positioned to benefit from both the double-digit expansion of card manufacturing and the steady demand for high-security printing services over the next three‑to‑five years. Following are the key growth drivers:

• Digital‑payments expansion – the Indian card‑issuance market is growing at double-digit rates as cash‑less transactions surge.
• Regulatory & security standards – PCI‑PIN, EMV, RBI, and NPCI mandates push banks toward certified, multi-layered card‑personalisation partners.
• Demand for premium & sustainable cards – metal, biometric, and “Made‑in‑India” cards are gaining traction among premium‑segment consumers and corporate clients.
• Supply‑chain rationalisation – consolidation of printing and card‑personalisation facilities (e.g., multi-site approvals for both cheques and cards) creates economies of scale.

Growth‑Rate Snapshot (Past vs Future)

Segment	Past Growth (FY 2023, FY 2025)	Future Growth (FY 2025, FY 2028)
Payment Card Manufacturing	CAGR ≈ 9.7 % (71.9 M → 105.8 M → 86.6 M cards issued) – market share rose from ~25 % (FY 23) to 31.9 % (FY 25).	≈ 12 % (driven by continued RBI push for contactless & biometric cards, premium card demand, and fintech onboarding).
Secure Document Printing	≈ 6 % (steady demand from banking & government institutions; modest digitisation of paper-based processes).	≈ 5 % (slow down as electronic payments replace some cheque volumes, but regulatory-mandated security printing sustains a baseline).
Variable Data & Form Printing	≈ 8 % (rise in customized B2B forms and promotional stationery).	≈ 9 % (digital marketing spend and “personalised” product trends boost demand).
IT Enabled Services & RFID Solutions	≈ 14 % (Rite Infotech’s revenue grew as banks adopted RFID-based asset tracking and QR payment kits).	≈ 15–16 % (increased adoption of IoT-enabled logistics, smart card ecosystems, and data security platforms).
Ancillary Services (Logistics, Compliance, After Sales)	≈ 5 % (steady growth tied to card distribution volumes).	≈ 6 % (higher value-added services for premium card programmes).

Source: RHP

 

 

Seshaasai Technologies Limited – Company Overview

Founded on September 17, 1993 in Mumbai, as Seshasai Business Forms Private Limited, the company was established by Pragnyat Pravin Lalwani and Gautam Sampatraj Jain, who continue to serve as Managing Director and Whole Time Director, respectively. The company was rebranded to Seshaasai Technologies Limited on November 25, 2024, to reflect its focus on security technology, smart payment solutions, and variable data printing.

The company operates in the following segments:

• Security & Smart‑Payment Solutions – contactless payment cards, RFID-based traceability, QR-based UPI payment kits, encrypted cheque instruments.
• Variable‑Data Printing & Stationery – high‑volume, secure forms and printed products.
• IT‑Enabled Services – through Rite Infotech and related subsidiaries (software, data processing).

Market Share Snapshot (Credit/Debit Card Issuance – FY 2025)

FY	Seshaasai Share	“Others” Share
2023	25.0 %	75.0 %
2024	34.5 %	65.5 %
2025	31.9 %	68.1 %

Source: RHP

Strengths

• Integrated product‑to‑service chain – from secure card manufacturing to software platforms and BPO support.
• Strategic mergers (Seshaasai E‑Forms) that eliminated non-core BPO activities, sharpening focus on high-margin security tech.
• Strong promoter backing with personal guarantees, facilitating access to bank credit at competitive rates.

Financial Profile

Patchy Revenue Growth: M&A impacted growth in earlier years and resulted in a strong 2 year CAGR. However, the dip in revenue during FY25 was due to lower volume of payment card issuances in FY25. Also, the company’s market share in both credit and debit cards witnessed a dip.

Strong Margin Expansion: The Group’s Profit After Tax (PAT) margin has shown consistent improvement over the last three fiscal years, rising from 9.37% in FY 2023 to 10.78% in FY 2024 and 15.09% in FY 2025. Similarly, the Gross Profit Margin improved from 34.97% in FY 2023 to 36.60% in FY 2024 and 41.82% in FY 2025.

Table: Valuation

Name of the company	Closing price on September 15, 2025 (INR)	Revenue from Operations for Fiscal 2025 (INR in million)	EPS  Basic (INR)	EPS  Diluted (INR)	NAV (INR per share)	P/E
Seshaasai Technologies Limited	423*	14,631.51	15.06	15.06	45.37	28.1

Source: RHP; * – Upper end of price band

 

Table: KPI Comparison

Company Name	Particulars (Units)	FY 2023	FY 2024	FY 2025	CAGR
Seshaasai Technologies Limited	Revenue from Operations (INR in million)	11,462.99	15,582.56	14,631.51	13.00%
	Total Income (INR in million)	11,538.39	15,696.71	14,736.17	–
	Segmental Revenue
	Segment 1 (Payment Solutions) (INR in million)	7,075.63	10,523.82	9,146.91	13.70%
	Segment 2 (Communication and fulfilment solutions) (INR in million)	4,257.01	4,434.66	4,344.91	1.03%
	Segment 3 (IOT Solutions) (INR in million)	41.34	539.37	1,062.31	–
	Revenue growth (YoY) (%)	70.44%	35.94%	(6.10)%	–
	Gross Profit (INR in million)	4,009.10	5,703.51	6,119.29	–
	Gross Profit Margin (%)	34.97%	36.60%	41.82%	–
	EBITDA (INR in million)	2,074.27	3,030.10	3,703.65	33%
	EBITDA Margin (%)	17.98%	19.30%	25.13%	–
	PAT (INR in million)	1,080.98	1,692.78	2,223.20	42%
	PAT Margin (%)	9.37%	10.78%	15.09%	–
	Return on Equity (RoE) (%)	37.26%	39.00%	34.84%	–
	Return on Capital Employed (RoCE) (%)	28.65%	33.47%	31.87%	–
	Net Debt (INR in million)	2,448.61	2,262.86	2,374.74	–
	Net Debt to EBITDA ratio (times)	1.18	0.75	0.64	–
	Net Debt to Equity ratio (times)	0.84	0.52	0.37	–
	Gross Fixed Asset turnover (times)	3.49	3.67	2.71	–
	Net Working Capital (INR in million)	2,338.62	2,664.53	3,811.93	–
	Net Working Capital Days (Number of days of sales)	74	62	95	–

Source: RHP