Seshaasai Technologies
- Seshaasai Technologies is coming out with a 100% book building; initial public offering (IPO) of 1,98,19,885 shares of 10 each in a price band Rs 402-423 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 23, 2025 and will close on September 25, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 10 and is priced 40.20 times of its face value on the lower side and 42.30 times on the higher side.
- Book running lead managers to the issue are IIFL Capital Services, ICICI Securities and SBI Capital Markets.
- Compliance Officer for the issue is Manali Siddharth Shah.
Profile of the company
The company is a technology driven multi-location solutions provider focussed on offering payments solutions, and communications and fulfilment solutions catering primarily to the banking, financial services and insurance (BFSI) industry, with data security, and compliance at the core of its solutions. Solutions, that it offers at scale and on a recurring basis driven by its proprietary platforms, play a crucial role in enabling the operations and deliverables of the BFSI sector in India. It also offers Internet of Things (IoT) solutions to a diverse set of customers across industries. The company is one of the top two payments card manufacturers in India with a market share of 31.9% in Fiscal 2025 for credit and debit cards issuance in India improving from 25.0% in Fiscal 2023. The company is one of the largest manufacturers of cheque leaves in India.
The company’s business verticals comprise Payment Solutions, Communication and Fulfilment Solutions and IoT solutions. The company offers a range of payment enabling instruments on Indian and well recognized global payment schemes such as, debit cards, credit cards, pre-paid cards, mass transit cards and cheques. The company also develops merchant QR codes that enable digital payment transition onto the Unified Payment Interface (UPI) at the point of sale. Also, the company offers secured omni-channel communication solutions that are technology centric, delivery format agnostic such as print, interactive portable document format (PDF) sent via email and text messages. Further, the company’s IoT Solutions encompass a comprehensive range of radio frequency identification (RFID) - enabled offerings and IoT ecosystem services tailored to meet diverse industry needs. It manufactures and supplies RFID-enabled inlays as well as inlays converted into tags and labels.
The company’s solutions are powered by its proprietary platforms that leverage advanced technologies and various communication systems and protocols to ensure that its solutions enhance productivities, enhance end customer experience, and increase business capacities for its customers. The company’s technology stack comprises RUBIC, eTaTrak, IOMS and izeIOT. The company provides an end-to-end traceability solution - from manufacturing custom RFID tags in-house, to custom graphical user interface for customers, to the application software that holds it all together. To streamline operations of its customers, its platforms are integrated seamlessly with its customer’s technology platforms, CRM systems, including mobile applications.
Proceed is being used for:
- Funding capital expenditure for the expansion of existing manufacturing units
- Repayment and / or prepayment, in part or in full, of certain outstanding borrowings of the company
- General corporate purposes
Industry Overview
The number of Point of Sale (POS) terminals in India has grown from 4.4 million in FY20 to 11.1 million in FY2025, representing a CAGR of 20.3%. This increase in POS terminals marks a crucial development in India's digital payment ecosystem. The proliferation of POS terminals, which enable card-based transactions, has allowed merchants in both urban and rural areas to accept digital payments, thereby reducing cash dependency. Advancements in financial technology have made POS systems more accessible and affordable for small and medium-sized businesses, further accelerating their adoption. From Fiscal 2005 to Fiscal 2023, public sector banks saw an increase of about 80% in the number of branches, while private sector banks experienced a much larger growth of 533% in the same period. Both public and private sector banks have substantially expanded their branch networks and digital capabilities to meet the varying needs of customers in both urban and rural regions.
The evolution of payment card technology in India reflects the country's journey toward a digital and cashless economy. In the past, traditional magnetic stripe cards dominated the payment landscape, offering convenience but limited security. The introduction of EMV (Europay, Mastercard, Visa) chip cards in the 2010s marked a significant shift, enhancing security through encryption and reducing fraud. Today, India has embraced contactless payments via NFC-enabled cards, enabling faster and more convenient transactions, especially in urban areas. Innovations like tokenization and mobile wallet integration have further expanded the ecosystem. Looking ahead, the future of payment card technology in India is poised to include biometric authentication, dynamic CVV, and integration with blockchain for secure and transparent transactions. These advancements, coupled with initiatives like RuPay and UPI-linked debit cards, will continue to drive financial inclusion and make India a leader in digital payments.
Further, the total number of payment cards in circulation in India, encompassing credit cards, debit cards, and PPIs, stood at 1,083 million units in 2020. By 2024, this figure had increased to 1,403 million units and is anticipated to grow to 2,225 million units by 2030, with an expected CAGR of 8.0% from 2024 to 2030. Among the various segments, credit cards are expected to experience the highest growth, with a projected CAGR of 21.6% in the FY24-30 period. Prepaid payment instruments (PPI) are expected to follow, with a CAGR of 11% in the same period of FY24-30. Moreover, the total number of payment cards issued in India, including credit cards, debit cards, and prepaid payment instruments (PPI), was 257 million units in 2020. This number grew to 353 million units in 2024 and is projected to reach 519 million units by 2030, with an expected compound annual growth rate (CAGR) of 6.6% from FY2024 to FY2030.
Pros and strengths
Established leadership position in the large and regulated payment solutions industry: The company is one of the top two payments card manufacturers in India with a market share of about 31.9% in Fiscal 2025 for credit and debit cards issuance in India. Its estimated market share has increased from about 25.0% in Fiscal 2023 to about 31.9% in Fiscal 2025 for credit and debit cards issuance in India. The payments card manufacturing industry poses high entry barriers due to significant capital requirements, stringent regulatory standards, technological expertise, and the dominance of established players. Its success is attributable to its domain expertise, portfolio of offerings, diverse customer base, advanced processes, geographical spread and large and scalable infrastructure. Its extensive experience of over three decades has allowed it to gain an in-depth understanding of the market and have cemented its position as one of the leading players in the BFSI sector.
Comprehensive portfolio of customizable and scalable solutions: The company offers a comprehensive portfolio of solutions that are customizable and built for scale. Its Payment Solutions, and Communication and Fulfilment Solutions, fulfil the requirements of its customers primarily in the BFSI industry and also customers across other industry segments. It offers solutions to customers to address changing regulatory requirements and evolving technologies. The company has a long standing partnership with NPCI on RuPay products and have been instrumental in fostering innovation in the Indian financial ecosystem with certain initiatives.
Proprietary technology stack enabling bespoke solutions: By integrating consulting, design and engineering, it has developed platforms that meet its customers’ requirements. Its technology platforms enable it to offer comprehensive services to its customers. The company is able to deliver comprehensive solutions that drive digital transformation and operational excellence across a wide range of industries. Its technology stack comprises platforms that use advanced technologies such as AI, robotic automation, API frameworks, IoT, and various communication systems and protocols. Its customers also benefit from its significant experience across various technologies, industry knowledge and proprietary tools developed in-house. Its ability to ensure data security, automation and agility all at scale allows it to effectively service large enterprise customers.
Pan-India advanced manufacturing capabilities: The company is one of the few vendors in India to have approved units for manufacturing of plastic cards, metal cards, sustainable cards, biometric cards, wearables, and payment stickers. As of March 31, 2025, it operates 24 manufacturing units across seven locations in India. In its experience, its multi-location capabilities ensure that it offers an integrated platform to customers right from data to dispatch. It possesses robust infrastructure capabilities that ensure scalability for its operations. The company has over the years scaled up its manufacturing capacity. It has expanded its capacity from 7.30 million cards per month in Fiscal 2023 to 11.94 million cards per month in Fiscal 2025.
Risks and concerns
Maximum revenue comes from limited customers: The company has garnered 65.77%, 68.94% and 66.05% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. The company’s ability to maintain close relationships with these and other major customers is essential to the growth and profitability of its business. Any loss or reduction of business from these customers could reduce its revenues and adversely affect its business, results of operations, financial condition, and cash flows.
Dependent on banking sector for significant revenue: The company has garnered maximum revenue from banking sector. It has garnered 65.12%, 70.05% and 64.21% of its total revenue from banking sector in FY25, FY24 and FY23 respectively. The company’s business is therefore largely dependent on the demand for its services from customers in the BFSI industry. A downturn in the BFSI sector, a slowdown or reversal of the trend to outsource payments and communication services or the introduction of regulations that restrict or discourage companies from outsourcing could result in a decrease in the demand for its services and adversely affect its business, results of operations, financial condition, and cash flows.
Business is dependent on its manufacturing unit: The company serves its customers through a network of 24 manufacturing units as of March 31, 2025. Its business is dependent upon its ability to manage its manufacturing units, which is subject to various operating risks, including those beyond its control, such as the breakdown, failure of equipment or industrial accidents, severe weather conditions, fire, power interruption and natural disasters. Also, any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with its operations could have an adverse effect on its business, financial condition and results of operations.
Import a portion of its raw materials and certain machinery from international markets: The company’s operations and its suppliers’ ability to provide raw materials and machinery to it at competitive prices is affected by global commodity prices, inflation and its ability to negotiate with its suppliers effectively. For example, pricing and availability of commodities can be volatile due to numerous factors beyond its control, including general domestic and international economic conditions, geopolitical tensions, extreme weather changes, import duties and tariffs and foreign currency exchange rates. Other factors such as tariffs and economic or political conditions of the countries where it procures supplies from may also result in increases in costs of parts and materials, which could increase its production and delivery costs and reduce its margins.
Outlook
Seshaasai Technologies is a technology-driven, multi-location solutions provider, specializing in payment solutions, as well as communications and fulfilment services, primarily catering to the BFSI industry. The company has comprehensive portfolio of customizable and scalable solutions. On the concern side, the company generates a significant portion of its revenues from a limited number of customers, and any loss or reduction of business from these customers could reduce its revenues and adversely affect its business, results of operations, financial condition, and cash flows. Moreover, the company is exposed to the risks of providing solutions and services to the government projects / institutions and public sector enterprises.
The issue has been offering 1,98,19,885 shares in a price band of Rs 402-423 per equity share. The aggregate size of the offer is around Rs 796.76 crore to Rs 838.38 crore based on lower and upper price band respectively. Minimum application is to be made for 35 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations decreased by 6.10% from Rs 15,582.56 million in Fiscal 2024 to Rs 14,631.51 million in Fiscal 2025, primarily due to a decrease in domestic sale of products. Moreover, profit for the year surged 31.33% to Rs 2,223.20 million in Fiscal 2025, compared to Rs 1,692.78 million in Fiscal 2024.
The company is one of the top two payments card manufacturers in India with a market share of 31.9% in Fiscal 2025 for credit and debit cards issuance in India. In 2020, the total market for payment cards in India (including credit cards, debit cards, and prepaid payment instruments), was valued at Rs 9,071 million. By 2024, this market had expanded to Rs 30,804 million, and it is projected to reach RS 61,684 million by 2030, growing at a CAGR of 12.3% from Fiscal 2024 to Fiscal 2030. The company intends to continue to consolidate its leadership position in the payment cards industry with the introduction of new offerings and solutions to its existing customers.
