Sedemac Mechatronics files DRHP with SEBI for 100% OFS IPO

A91 Partners, Catamaran Ventures and Xponentia Capital-backed Sedemac Mechatronics Ltd have filed their draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering.According to the DRHP, the proposed issue will be a complete offer for sale (OFS) of up to 80.43 lakh shares. Since the entire issue is an OFS, the company will not receive any proceeds from the offer. The selling shareholders, including existing investors and promoters, will offload part of their holdings through the IPO.

Sedemac Mechatronics is one of India’s leading manufacturers of generator controllers, supplying electronic control units (ECUs) critical to automotive and industrial applications. The company’s ECUs are used by leading Original Equipment Manufacturers (OEMs) in India and in international markets such as the United States and Europe.

An important differentiating factor for Sedemac is the focus on internal innovation. The majority of revenue comes from products built on proprietary control technologies developed entirely within the company, allowing the company to deliver customized and value-driven solutions to OEM customers.

Financially, the company has shown consistent growth over the years. Operating revenue rose from Rs 423.03 crore in FY23 to Rs 530.65 crore in FY24, and further to Rs 658.36 crore in FY25. Profits also improved from Rs 8.57 crore in FY23 to Rs 5.88 crore in FY24 and Rs 47.05 crore in FY25. For the three months ended June 30, 2025, revenue was Rs 217.36 crore with profit of Rs 17.07 crore.

ICICI Securities, Avendus Capital and Axis Capital are acting as the lead managers on this issue. (Disclaimer: The recommendations, suggestions, views and opinions of experts are their own and do not represent the views of The Economic Times.)