Seshaasai Technologies shares list at a minor premium to their issue price despite strong IPO subscription

Shares of Seshaasai Technologies Ltd., made their stock market debut at ₹436 per share on Tuesday, September 30, which was a minor premium in comparison to its IPO price.

The subdued listing comes despite the company's ₹813 crore IPO receiving a strong response over a three-day period.

Seshaasai Technologies' three-day IPO saw an overall subscription of 68 times in comparison to the total number of shares on offer, according to data on the NSE.

Institutions led the subscription, with the portion reserved for Qualified Institutional Bidders (QIBs) seeing an overall subscription of 189 times the total number of shares on offer.

The portion reserved for non-institutional investors was subscribed 50 times, while that for retail investors was subscribed 9.2 times.

Ahead of its IPO, the company had also raised ₹243 crore from anchor investors including ValueQuest, Tata AIG, UTI MF, HSBC MF, among others.

The company intends to use ₹198 crore from the IPO proceeds for funding expansion-related capex, repay debt worth ₹300 crore and use the rest for general corporate purposes.

Post the IPO, promoters of the company will continue to have an 81% stake.

Seshaasai Technologies is a technology driven multi-location solutions provider and operates under Payment Solutions, Communication and Fulfilment Solutions along with IoT Solutions.

The company has 24 manufacturing units across seven locations and has clients such as HDFC Bank, ICICI Bank, SBI, HDFC Life, among other companies.