Seshasaai Technologies files for IPO to raise US$67.65M for expansion and debt reduction

INDIA — Seshasaai Technologies (STL), a leading multi-location technology and secure solutions provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as it prepares for an Initial Public Offering (IPO).

The fundraising move is designed to support the company’s aggressive capacity expansion and strengthen its balance sheet as it capitalises on its strong leadership position in the Banking, Financial Services and Insurance (BFSI) sector.

According to media reports, the proposed IPO will comprise a fresh issue of equity shares worth up to INR 600 crore (US$67.65m), along with an Offer For Sale (OFS) of up to 39.37 lakh equity shares by existing shareholders Pragnyat Pravin Lalwani and Gautam Sampatraj Jain.

From the fresh issue proceeds, STL plans to allocate INR 195.33 crore (US$22.02m) toward capex for the expansion of its manufacturing units.

A substantial INR 300 crore (US$33.83m) has been earmarked for repayment or prepayment of outstanding loans, a move projected to generate annual interest savings of around INR 29 crore (US$3.27m).

The remaining capital will be used for general corporate purposes.

STL operates 24 manufacturing units across seven locations in India and serves more than 35,800 bank branches, underlining its nationwide reach and operational scale.

Its dominance in the BFSI segment, contributing 84% of its revenue, is driven by its expertise in manufacturing and personalizing payment cards, secure data embedding, and end-to-end fulfilment services.

STL currently commands a 31.9% market share in India’s card issuance segment (FY25), positioning it among the top two players in the country.

The company’s business is structured around three core verticals that reflect its evolution from a secure printing specialist into a diversified technology-driven solutions provider.

The Payment Solutions division remains STL’s primary revenue generator, contributing 62.5% of FY25 revenue.

This segment encompasses the manufacturing and personalization of payment cards, debit, credit, and prepaid, along with secure data embedding services.

With India’s digital payments ecosystem expanding rapidly, demand for secure, high-quality payment cards continues to fuel growth in this segment.

The Communication and Fulfilment vertical accounts for 29.7% of the company’s FY25 revenue. It includes document printing, mailing, and logistics management services that support large-scale customer communication requirements for banks, financial institutions, and enterprises.

STL’s nationwide presence and integrated workflows enable efficient, end-to-end fulfilment for high-volume transactional documents.

The third pillar, IoT Solutions, represents 7.3% of revenue but stands out as the fastest-growing segment.

Focused on RFID tags, asset tracking systems, and warehouse management technologies, this vertical has registered an exceptional 25-fold growth over the past two years.

As industries accelerate adoption of automation and smart tracking tools, STL’s IoT business is poised to become a major long-term growth driver.

STL’s IPO plans come as the secure printing and smart solutions industry experiences renewed momentum.

Earlier this year, Securities Printing Corporation of India announced investments in modern card-personalization lines, while M-Tech Innovations revealed capacity expansions to meet rising demand for RFID-enabled payment and transit cards.

The broader BFSI digitalization drive, including contactless payments and advanced authentication requirements, is further accelerating growth across the sector.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE