A91 Partners, Xponentia, 360 One set for quick multiples from Sedemac Mechatronics IPO

Synopsis According to Sedemac’s red herring prospectus, A91 Partners invested nearly Rs 300 crore through primary and secondary transactions. The Mumbai-based investor, which currently owns around 18% stake in Sedemac, is offloading around 5% of the shares worth Rs 326 crore in the IPO, which is entirely an offer-for-sale. Automotive electronic and electrical component maker Sedemac Mechatronics is set to open its Rs 1,087-crore initial public offering (IPO) on Wednesday, delivering hefty gains for late-stage backers that entered the Pune-based company’s cap table less than two years ago. This includes growth equity firm A91 Partners, which is expected to see 3.7X returns on an investment made in 2024. According to Sedemac’s red herring prospectus, A91 Partners invested nearly Rs 300 crore through primary and secondary transactions. The Mumbai-based investor, which currently owns around 18% stake in Sedemac, is offloading around 5% of the shares worth Rs 326 crore in the IPO, which is entirely an offer-for-sale. Its remaining stake in the company will be worth around Rs 760 crore. Similarly, mid-market private equity firm Xponentia and 360 One Asset Management are likely to see substantial returns on their investments. Xponentia had invested around Rs 175 crore, and 360 One had put in around Rs 143 crore. While Xponentia is sitting on 3.8X paper gains, 360 One Asset Management will see about 3.5X returns. These calculations are based on the upper end of Sedemac’s price band, which has been set at Rs 1,287-1,352 per share. A91, Xponentia, and 360 One had led a $100-million funding round for Sedemac in May 2024. This round had seen Sedemac’s early investors, including Nexus Venture Partners and TR Capital, fully exit their holdings in the company. A91 Partners has recently been scoring exits from some of its portfolio companies, including silver jewellery brand Giva, from which it made a partial exit as reported by ET in January; and Aye Finance, which went public in February. Sedemac, which was founded in 2007, on Monday raised Rs 326 crore from anchor investors ahead of its IPO. These include the likes of Abu Dhabi Investment Authority, SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, and others. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Subscribe Now