Seshaasai Technologies IPO: Check IPO Date, Lot Size, Price & Details

Overview

Seshaasai Technologies Ltd. is a multi-location technology solutions provider, focusing on the banking, financial services, and insurance (BFSI) sector, with offerings across Payment Solutions, communication and fulfilment solutions, and IoT Solutions. Its proprietary platforms are built on data security, compliance, and traceability, enabling high-volume, recurring services for regulated industries.

The company is among the top two payment card manufacturers in India, holding a 31.9% market share in FY25 in credit and debit card issuance, up from 25.0% in FY23 (F&S Report). It is also one of the largest cheque leaf manufacturers in India. In FY25, Seshaasai supplied ~91 million payment cards and ~1.19 billion cheque leaves. Product innovations include patented QR-secured instruments, NFC-enabled merchant QR codes, RuPay On-the-Go wearables, and ‘Made in India’ biometric and metal cards approved by global schemes.

In Communication & Fulfilment Solutions, the company supplied ~27 million policy documents, ~23 million insurance communications, and ~14.8 million tax identity cards in FY25. Cumulatively, it has supplied ~480 million citizen identity cards. With 1,780 SKUs and coverage of 35,800+ bank branches, its proprietary Inventory and Order Management System (IOMS) supports on-demand, branch-level printing with cost efficiency and low turnaround times.

In IoT Solutions, Seshaasai manufactures RFID-enabled inlays, tags, and labels and provides IoT ecosystem services. Volumes have scaled sharply from ~5 million units in FY23 to ~323 million units in FY25, serving industries such as retail, logistics, renewable energy, manufacturing, and BFSI.

The company operates 24 self-sustained manufacturing units across seven Indian locations, with a daily installed capacity of 0.47 million cards and 1.67 million RFID tags. It also runs two R&D labs (Bengaluru and Faridabad). Its facilities are certified by Visa, Mastercard, NPCI (RuPay), PCI-DSS, and IBA, which serve as strong entry barriers.

Seshaasai has established deep penetration in BFSI: in FY25, it served 10 of 12 PSU banks, 15 of 21 private banks, 9 of 11 small finance banks, 12 of 24 life insurers, and 9 of 32 general insurers. The company also works with depositories, fintechs, and government agencies.

Revenue Mix (FY25):

• Payment Solutions - 62.52%
• Communication & Fulfilment Solutions - 29.7%
• IoT Solutions - 7.26%
• Others 0.41%

IPO Details

Object of Issue

• Financing capital expenditure to expand existing manufacturing facilities
• Repaying and/or prepaying, either fully or partially, certain outstanding borrowings of the company

Key Strengths

• Established Leadership in Payment Solutions
  Seshaasai Technologies is one of the top two payment card manufacturers in India, with a 31.9% market share in FY25, up from 25% in FY23. It serves 10 of 12 PSU banks, 15 of 21 private banks, 9 of 11 small finance banks, 12 of 24 life insurers, and 9 of 32 general insurers. The Indian payment card market is large, valued at ₹3,080.4 crore in 2024, and expected to reach ₹6,168.4 crore by 2030 (CAGR 12.3%), with cards in circulation rising from 1,403 million in 2024 to 2,225 million by 2030. Recurring demand is supported by card expiry cycles (3–7 years) and regulatory updates. High entry barriers exist due to capital requirements, technology, compliance, and established players.
• Long-Standing Relationships with a Large Customer Base
  Seshaasai Technologies has established long-term relationships with a broad customer base, retaining existing clients while attracting new ones. In FY25, FY24, and FY23, the company serviced 702, 476, and 355 customers, respectively. Revenue from existing customers accounted for 97.14% of total revenue in FY25, with 63.3% of revenue from customers with 10+ years of relationship, and the top five customers contributed 49.1% of revenue, highlighting both client stickiness and concentration among major BFSI clients.
• Comprehensive Portfolio of Customizable and Scalable Solutions and Long-Standing Partnerships
  Seshaasai Technologies offers a broad portfolio of scalable and customizable solutions across Payment, Communication, and Fulfilment segments, primarily serving BFSI clients and select customers in other industries. Its solutions help clients adapt to evolving regulations and technologies. The company maintains a long-standing partnership with NPCI on RuPay products and has contributed to innovations in the Indian financial ecosystem, reinforcing its position as a trusted technology partner.

Key Risks

• Customer Concentration
  Seshaasai Technologies generates a significant portion of its revenue from a limited number of key customers, primarily in the BFSI sector. In FY25, FY24, and FY23, the company serviced 702, 476, and 355 customers, respectively. Any loss of, or reduction in business from, these key clients could materially affect revenue, profitability, and cash flows. Maintaining strong relationships with major customers is therefore critical to the company’s growth and financial stability.
• Industry Concentration
  In FY25, Seshaasai Technologies generated 65.1% of its revenue from banking, 6.7% from insurance, and 11.9% from fintech, reflecting significant dependence on the BFSI sector. The company’s business is highly sensitive to trends in these industries, including demand for outsourced payment and communication solutions. Any downturn in the BFSI sector, reduced outsourcing by clients, or regulatory changes limiting outsourcing could materially affect the company’s revenues, profitability, and cash flows. This concentration exposes Seshaasai to sector-specific risks, making diversification and continued client engagement critical for business stability.
• Exposure to Government and Public Sector Projects
  In FY25, Seshaasai Technologies derived ₹604.1 crore (41.3% of revenue) from government projects, institutions, and public sector undertakings, including nationalised banks. Revenue from these clients exposes the company to risks such as delayed payments, slower receivable turnover (72.9 days in FY25 vs. typical 30-day credit terms), and changes in government policies or budget allocations. Any delays, cancellations, or modifications in government contracts could adversely affect cash flows, financial condition, and operational stability.

Financial Snapshots

KPI Comparison with Industry Peers

Note: There are no listed companies in India that are comparable in all aspects of business and services.

Conclusion

Seshaasai Technologies, one of India’s top two card manufacturers with a market share of ~32%, is well-positioned to benefit from regulatory-driven card replacement and the growing adoption of digital payments. Its diversified offerings across cards, wearables, and QR solutions drive customer stickiness and growth visibility, supported by strong revenue momentum, expanding margins, high ROE/ROCE, and prudent leverage. Despite risks from BFSI dependence and regulatory compliance, its market leadership and execution strengths provide resilience. Overall, the recommendation is to subscribe for the long term, given its scalable model and structural digital tailwinds.