Seshaasai Technologies IPO Sees Moderate Demand on Day One
Seshaasai Technologies' IPO, aiming to raise Rs 813.07 crore, was subscribed 0.60 times overall on the first day. Non-institutional investors showed the highest interest with 1.64 times subscription, followed by retail at 0.77 times, while institutional investors did not participate. The IPO includes a fresh issue of Rs 480 crore and an offer for sale of Rs 333.07 crore, with a price band of Rs 402-423 per share. Funds will be used for capital expenditure, debt repayment, and general corporate purposes. The IPO runs from September 23-25, with listing expected on September 30. The grey market premium indicates a potential listing price of Rs 505.
*this image is generated using AI for illustrative purposes only.
Seshaasai Technologies, a tech-driven solutions provider catering to the Banking, Financial Services, and Insurance (BFSI) sector, launched its Initial Public Offering (IPO) with a lukewarm response on the first day of subscription. The IPO, which aims to raise Rs 813.07 crore, was subscribed 0.60 times overall by the end of day one.
Subscription Details
The subscription breakdown for the first day reveals varying levels of interest across investor categories:
| Investor Category | Subscription Rate |
|---|---|
| Institutional | 0.00 |
| Non-Institutional | 1.64 |
| Retail | 0.77 |
IPO Structure and Pricing
Seshaasai Technologies has structured its IPO as a book-built issue with the following components:
- Fresh issue: Rs 480.00 crore
- Offer for sale: Rs 333.07 crore
- Price band: Rs 402 to Rs 423 per share
Retail investors interested in participating in the IPO need to make a minimum investment of Rs 14,805 for a lot size of 35 shares.
Utilization of Funds
The company has outlined its plans for the proceeds from the fresh issue:
- Capital expenditure: Rs 197.91 crore
- Debt repayment: Rs 300.00 crore
- General corporate purposes: Remaining amount
IPO Timeline and Listing
The IPO subscription window is open from September 23 to September 25. Investors and market watchers can expect the shares to be listed on September 30.
Grey Market Premium
The grey market is showing some optimism for Seshaasai Technologies' shares. With a grey market premium of Rs 82, the estimated listing price stands at Rs 505, suggesting a potential upside from the upper end of the price band.
As the IPO progresses, it remains to be seen how investor sentiment evolves, particularly in the institutional investor category, which showed no participation on the first day. The company's focus on tech-driven solutions for the BFSI sector could be a point of interest for investors looking at the growing digitalization trends in financial services.
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