SEDEMAC Mechatronics Files for IPO: Investors Eyeing Big Exit? Details Inside!

SEDEMAC Mechatronics, a deeptech startup incubated at IIT-Bombay, has officially submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). This upcoming IPO is structured solely as an Offer for Sale (OFS), meaning no new capital will be raised by the company. Instead, it will facilitate the sale of around 80.43 Lakh shares by existing investors and promoters.

Key investors planning significant stake sales include A91 Partners (selling 24.11 Lakh shares), 360 ONE Asset (11.53 Lakh shares through entities), and Xponentia Capital (10.45 Lakh shares). Founder and CEO Manish Sharma and promoter Ashwini Amit Dixit are also offloading a portion of their holdings. While the final IPO size is yet to be determined, it is anticipated to be between INR 800 Cr and INR 1,000 Cr, based on earlier reports.

ICICI Securities, Avendus Capital, and Axis Capital are managing the IPO as book-running lead managers, with MUFG Intime India serving as the registrar.

SEDEMAC, founded in 2007, specializes in designing and manufacturing advanced electronic control systems for mobility and industrial applications. Its product portfolio includes engine and motor control units, integrated starter generators, and fuel injection systems used in various vehicles and industrial powertrains. The company boasts major Original Equipment Manufacturers (OEMs) like Tata Motors, Mahindra Group, Ashok Leyland, and TVS Motors among its clientele.

Financially, SEDEMAC reported a net profit of INR 17.1 Cr and a revenue of INR 217.4 Cr in the first quarter of Fiscal Year 2026. For the full fiscal year 2025, the company saw a substantial 8X year-on-year surge in net profit to INR 47.1 Cr, with operating revenue growing 24% year-on-year to INR 658.4 Cr.

This IPO filing follows a recent $100 Million funding round where SEDEMAC raised capital, including primary infusion and secondary transactions for investors like Xponentia Capital Partners, A91 Partners, and 360 ONE Asset. The capital from that round was intended for expanding manufacturing facilities and global presence in the US and EU.

Impact: This news is significant for investors as it marks the entry of a deeptech player into the public markets, offering a potential investment opportunity. The OFS structure indicates a focus on liquidity for existing stakeholders rather than company expansion funding, which could be a point of consideration for investors.

Impact Rating: 7/10

Difficult terms: DRHP (Draft Red Herring Prospectus): A preliminary document filed by a company with SEBI before launching an IPO, containing details about the company, its financials, and the proposed offering. IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time to raise capital. OFS (Offer for Sale): A type of IPO where existing shareholders (promoters or investors) sell their shares to the public, rather than the company issuing new shares. Book-running lead managers: Investment banks that manage the IPO process, including marketing the offering, structuring the deal, and underwriting the shares. Registrar: An entity responsible for maintaining records of shareholders, processing share transfers, and handling other administrative tasks related to the IPO. OEMs (Original Equipment Manufacturers): Companies that manufacture products and then sell them under their brand name. In this context, they are the major vehicle manufacturers. FY (Fiscal Year): A 12-month period used for accounting and financial reporting. In India, it typically runs from April 1st to March 31st. YoY (Year-on-Year): A comparison of financial data over two consecutive years, for the same period. Incubated: A startup that has been supported by an incubator program, typically providing resources, mentorship, and funding to help it grow.