Management

• Pragnyat Pravin Lalwani (Chairman & Managing Director)
• Gautam Sampatraj Jain (Whole-time Director)
• Jayeshkumar Chandrakant Shah (Non-Executive Director)
• Abbhijet Ghag (Independent Director)
• Sowmya Vencatesan (Independent Director)
• Mehul Suresh Shah (Independent Director)
• Pawan Kumar Pillalamarri (Chief Financial Officer)

Use of Proceeds

The total issue size is Rs. 813.07 cr, which comprises a fresh issue of Rs 480.00 cr and offer for sale (OFS) of Rs 333.07 cr. The company intends to utilize a portion of the net proceeds towards Repayment and/or prepayment, in part or in full, of certain outstanding borrowings of the Company (Rs 300 cr), Funding capital expenditure for the expansion of existing manufacturing units (Rs 197.91 cr), and the rest for general corporate purposes

Competitive Strengths

Established Leadership Position in the Large and Regulated Payment Solutions Industry The company has established a leadership position in India’s large and regulated payment solutions industry, benefiting from high barriers to entry. It ranks among the top two payment card manufacturers, holding a 31.9% market share in Fiscal 2025, up from 25% in Fiscal 2023. Services cover 10 of 12 PSU banks, 9 of 11 small finance banks, 15 of 21 private banks, 9 general insurers, and 12 life insurers. The total number of payment cards in India grew from 1,083 million in 2020 to 1,403 million in 2024 and is projected to reach 2,225 million by 2030, driven by regulatory upgrades and programmed card replacements.

High Barriers to Entry and Market Growth High entry barriers in the payment card manufacturing sector include significant capital requirements, stringent regulations, technological expertise, and dominance of established players. Expiry cycles of three to seven years create recurring demand as banks replace cards, often due to compliance with mandates such as PCI DSS. The market value of payment cards in India increased from Rs 9,071 million in 2020 to Rs 30,804 million in 2024 and is expected to reach Rs 61,684 million by 2030, growing at a CAGR of 12.3%. This sustained expansion underscores strong opportunities for manufacturers in the sector.

Long-Standing Relationships with a Large Customer Base The company’s success relies on long-standing customer relationships, built over three decades through domain expertise, diverse offerings, and scalable infrastructure. It manages the full payments lifecycle from data receipt to card manufacturing and delivery, with production capacity of 11.94 million cards per month as of March 2025. Recognitions include Best Tech Brand in BFSI by Economic Times (2021–2024) and Asia’s Leading Brand in Customer Communication Management in 2021. Customers grew from 355 in Fiscal 2023 to 702 in Fiscal 2025, reflecting strong retention. Over 75% of revenue comes from clients associated for more than five years.

Comprehensive Portfolio of Customizable and Scalable Solutions The company offers a comprehensive portfolio of Payment, Communication & Fulfilment, and IoT solutions tailored to regulatory requirements and technological evolution. Collaborations with NPCI enabled innovations such as RuPay qSPARC NCMC cards, RuPay On-the-Go wearables, payment keychains, stickers, and India’s first open-loop integrated payment and access device. Offerings include debit, credit, prepaid, mass transit cards, wearables, cheques, and merchant QR codes. Communication and Fulfilment Solutions deliver policy documents, statements, compliance material, and marketing campaigns, supported by the IOMS platform, while IoT solutions include RFID tags, inlays, and traceability services across multiple industries.

Proprietary Technology Stack and Pan-India Advanced Manufacturing Capabilities The company’s proprietary technology stack integrates consulting, design, and engineering, including RUBIC for secure data, eTaTrak for logistics, IOMS for inventory, and izeIOT for IoT ecosystems. Platforms enhance security, agility, and scalability, supporting digital transformation in BFSI, logistics, retail, renewable energy, and manufacturing. With 24 manufacturing units across seven locations, monthly card production of 11.94 million, RFID production of 41.67 million tags, two R&D labs, and 14 patent applications, the company emphasizes quality, innovation, and compliance. Certifications from global payment schemes, NPCI, PCI, and IBA reinforce standards adherence, positioning it as a secure, technologically advanced leader in regulated payment solutions.

Key Risks & Concerns

Technology risk: The future success of the company’s business depends in part on its ability to respond to technological advances and to emerging industry standards and practices on a cost-effective and timely basis. Thus, the emergence of new and advanced technologies could render company’s existing solutions obsolete or irrelevant, which could adversely impact its results of operations, financial condition, and cash flows.

High dependency on the BFSI sector: A substantial portion of company’s customers and revenues is concentrated in the BFSI industry, which contributes ~84% to the company’s total revenue. Therefore, the business is largely dependent on the demand for company’s services from customers in the BFSI industry, and any downturn or slowdown in the BFSI industry may harm the company’s operations.

Exposure to government projects: Approximately 40 percent of the company's revenue is derived from government and public sector (PSU) projects. These contracts frequently entail lengthy internal procedures and policy modifications that can postpone the duration from contract award to completion and final payment. While the company adheres to standard credit terms of 30 days, the actual period for collecting receivables has persistently surpassed this timeframe, thereby exerting further strain on working capital needs.

Customer concentration risk As of FY25, the company’s top 5/top 10 customers contributed ~49%/66% to the total revenue, respectively. Thus, the loss of key customers or a reduction in revenue earned from such key customers may hurt the company’s financials.

Outlook and Valuation

Seshaasai has delivered strong financial growth with revenue and EBITDA rising 1.3x and 1.8x over FY23–25 to Rs 1,463 crore and Rs 360 crore, supported by margin expansion from 17.4% to 24.6%. PAT grew 2.1x to Rs 222 crore in FY25. The company, one of the top two payment card manufacturers in India with 31.9% market share in FY25, plans to deploy Rs 198 crore from IPO proceeds to upgrade and expand manufacturing in Payment and IoT Solutions. Debt repayment of Rs 300 crore is expected to cut leverage from 0.6x to 0.04x and save Rs 29 crore annually in interest, aiding profitability.

The Indian payment card market, valued at Rs 30,804 million in FY24, is projected to almost double to Rs 61,684 million by FY30 at a CAGR of 12.3%. Seshaasai has built high entry barriers through its integrated data-to-dispatch model, advanced product portfolio of metal, biometric, sustainable, and dynamic CVV cards, and strong BFSI relationships, which contributed 83.78% of FY25 revenue. With 24 units across seven locations, card manufacturing capacity has expanded from 7.30 million per month in FY23 to 11.94 million in FY25. RFID tag capacity has reached 41.67 million per month, with further expansion planned at Navi Mumbai, Bengaluru, and Kundli.

The company served 702 customers in FY25, up from 355 in FY23, with 75.54% of revenue from clients associated for over five years and average top-client relationships exceeding a decade. Key BFSI clients include HDFC Bank, ICICI Bank, SBI, HDFC Life, SBI Life, and PhonePe, while non-BFSI revenue reached 16.22%. Expansion into IoT and RFID covers retail, logistics, manufacturing, pharma, and public transit, with global targets in North America and Europe through ARC certification and exhibitions. ROE of 34.8% and ROCE of 31.9% in FY25, coupled with international expansion and acquisitions, position Seshaasai for sustained long-term growth. Seshaasai Technologies Limited IPO is valued at a P/E multiple of 30.8x based on FY25 earnings on post-issue capital. Aggressive investors can SUBSCRIBE to the issue on account of healthy financials, leadership position, its expansion into IoT and RFID, its intended entry into international markets, and the forthcoming capital expenditures across manufacturing facilities, but actively monitor its execution post listing.