SEDEMAC Mechatronics IPO Day 1: Issue opens today. Check GMP, review, key dates. Apply or Skip?

SEDEMAC Mechatronics IPO Day 1: Sedemac Mechatronics, a manufacturer of powertrain controls and auto components, began its public subscription on March 4 and will conclude on March 6. SEDEMAC Mechatronics IPO price band has been set between ₹1,287 and ₹1,352, which values the company at approximately ₹6,000 crore at the upper limit. The company raised ₹326 crore from anchor investors prior to the opening of its initial public offering for public subscription, as mentioned in an update from the exchange. Among the anchor investors listed in a circular posted on the BSE website are Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Tata Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, and 3PIM India Equity (IFSC) Fund. Pune-based Sedemac Mechatronics is a supplier of control-intensive, critical-to-the-application electronic control units (ECU) to original equipment manufacturers (OEM) in the mobility and industrial markets in India, the US, and Europe. It develops, designs and manufactures sensor-less commutation-based integrated starter generators ECUs for two-wheeler and three-wheeler internal combustion engine-powered vehicles. The company's customers included TVS Motor Company, Bajaj Auto, Kirloskar Oil Engines, Briggs and Stratton LLC, and DEIF India. In terms of finances, the company announced a revenue of ₹217.35 crore and a profit after tax (PAT) of ₹17.07 crore as of June 30, 2025. For the fiscal year 2025, it recorded a revenue of ₹658.36 crore and a PAT of ₹47.04 crore. SEDEMAC Mechatronics IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employees have been reserved equity shares aggregating up to ₹1 crore. Tentatively, SEDEMAC Mechatronics IPO basis of allotment of shares will be finalised on Monday, March 9 and the company will initiate refunds on Tuesday, March 10, while the shares will be credited to the demat account of allottees on the same day following refund. SEDEMAC Mechatronics share price is likely to be listed on BSE and NSE on Wednesday, March 11. SEDEMAC Mechatronics IPO GMP today SEDEMAC Mechatronics IPO GMP is -17. Considering the upper end of the IPO price band and the current discount in the grey market, the estimated listing price of SEDEMAC Mechatronics shares is indicated as ₹1,335 apiece, which is 1.26% lower than the IPO price of ₹1,352. According to the grey market activities observed over the past week, the current IPO GMP indicates a trend towards a discount, suggesting a potential discount listing. The lowest GMP noted is ₹-17.00, while the highest GMP reported is ₹130, as per expert opinions. 'Grey market premium' indicates investors' readiness to pay more than the issue price. SEDEMAC Mechatronics IPO details SEDEMAC Mechatronics IPO consists solely of an offer for sale (OFS) of up to 80,43,300 equity shares being sold by promoters Manish Sharma and Ashwini Amit Dixit, along with other selling shareholders. As part of the OFS, several investors, including A91 Emerging Fund II LLP, NRJN Family Trust, Xponentia Capital Partners from Mumbai, Mace Pvt Ltd, 360 One group, and HDFC Life Insurance Company, will also be divesting their interests in the firm. Since the public offering is entirely an OFS, Sedemac Mechatronics will not receive any funds from the IPO. The book-running lead managers for the IPO include ICICI Securities, Avendus Capital, and Axis Capital, while MUFG Intime India Pvt. Ltd serves as the issue's registrar. SEDEMAC Mechatronics IPO review SBI Securities indicated that the significance of the product lineup and OEM approvals establishes considerable entry barriers. The compound annual growth rate (CAGR) for revenue, EBITDA, and PAT is projected at 34%/64%/123%, respectively, from FY23 to FY26E on an annualized basis. At the top price point of the issue at ₹1,352, the stock is priced at a 62.6x FY26E P/E on an annualized basis. The brokerage advises investors to SUBSCRIBE to the offering for the long term, though short-term gains upon listing are unlikely. Anand Rathi Research noted that the company intends to establish a robust market presence by providing a diverse array of essential, control-focused products, instead of confining itself to a limited range. Taking these aspects into account, the IPO seems to be fully priced and is given a rating of “Subscribe – Long Term.” SEDEMAC Mechatronics IPO subscription status Subscription for the public issue will open at 10:00 IST during Wednesday's deals. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.