IIT Bombay's small investment of Rs 4,080 in Sedemac turns to Rs 55 crore in IPO

The Society for Innovation and Entrepreneurship (SINE), a startup incubator at the Indian Institute of Technology (IIT) Bombay, is poised to generate windfall returns from the IPO of Sedemac Mechatronics, as the auto electronics maker's public issue enters its final day of subscription. At the upper end of the price band of Rs 1,352 per share, the stakeholding value of SINE is around Rs 55 crore. SINE, which backed the company in its early days, is selling up to 2.04 lakh shares in the IPO. This offloaded quantity would fetch about Rs 27.58 crore. The incubator's average acquisition cost was just Rs 0.01 per share, implying a total investment of roughly Rs 2,040 for the shares being sold. At the IPO price, the transaction translates into a gain of about Rs 27.58 crore and an extraordinary return of nearly 13.5 lakh times the original investment. Even after the partial exit, SINE will continue to hold another 2.04 lakh shares in the Pune-based company, representing a residual stake of about 0.46%. The Rs 1,087 crore IPO of Sedemac Mechatronics, priced in the range of Rs 1,287-1,352 per share, is entirely an offer for sale of 80.43 lakh shares. Since the issue does not include any fresh share sale, the company itself will not receive any proceeds from the public offering. Subscription for the IPO, which opened on March 4, had reached about 90% by the second day, with investors continuing to bid on the final day. Live Events Incubator bet pays off SINE has played a key role in nurturing early-stage technology ventures emerging from the IIT Bombay ecosystem. Over the past two decades, the incubator has supported more than 250 startups across sectors such as deep technology, clean energy and biotechnology. Several of these ventures have grown into prominent technology companies. Apart from Sedemac, startups supported by SINE include drone maker ideaForge, appliance company Atomberg and cell therapy firm ImmunoACT. The incubator functions as a broad-spectrum technology startup platform and works closely with several government agencies to support early-stage innovation. These include the Department of Science and Technology, Ministry of Electronics and Information Technology, Biotechnology Industry Research Assistance Council and the Technology Development Board. It also collaborates with corporations and international organisations on innovation programmes and startup initiatives. Early backers and founders are also monetising their stake Sedemac's IPO is also allowing several early shareholders and founders to partially monetise their holdings after nearly two decades of building the company. The company traces its origins to a research initiative at IIT Bombay in 2007, when Shashikanth Suryanarayanan, an associate professor in the institute’s mechanical engineering department, co-founded the venture from a campus laboratory. Over the years, Sedemac has grown into a manufacturer of genset controllers and electronic control units used in two-wheelers, three-wheelers, electric vehicles and industrial generator sets. Its components are supplied to major OEMs in India as well as customers in the United States and Europe. Also read: Mukesh Ambani’s record IPO of Jio delayed by regulatory limbo Manish Sharma, the company's Whole-Time Director and Chief Operating Officer, is selling 45,000 shares through the offer for sale. These shares were originally acquired at Rs 46 apiece. At the upper price band of Rs 1,352, the stake is valued at more than Rs 6 crore, representing a gain of nearly Rs 5.9 crore. Another selling shareholder is Ashwini Amit Dixit, wife of co-founder and Joint Managing Director Amit Arun Dixit. She is offloading 67,500 shares acquired at Rs 100 per share. At the IPO price, the stake is worth about Rs 9.12 crore. Following the IPO, Suryanarayanan will continue to hold a 16.16% stake in the company. At the upper end of the price band, this holding is valued at close to Rs 967 crore. Strong growth trajectory Sedemac's financial performance reflects its expansion in the automotive electronics space. Revenue from operations increased from Rs 423 crore in FY23 to Rs 531 crore in FY24 and further to Rs 658 crore in FY25. Profitability has also improved sharply. After reporting a profit of Rs 8.57 crore in FY23 and Rs 5.88 crore in FY24, the company posted a profit of Rs 47.05 crore in FY25. For the first quarter of FY26, Sedemac reported revenue of Rs 217 crore and profit of Rs 17 crore. Also read: FIIs will return to Indian stocks if any of these two conditions are met: Chris Wood of Jefferies With the IPO nearing closure and subscription levels approaching full coverage, early investors such as SINE are set to lock in significant gains from one of IIT Bombay’s most successful startup incubations. (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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