Seshaasai Technologies IPO: Apply or avoid?

Summary: Seshaasai Technologies, a technology-based payments and communications solutions provider, is going public on September 23, 2025. We analyse the company’s strengths, drawbacks and past track record to help you decide if this IPO is worth subscribing to.

Seshaasai Technologies IPO (initial public offering) will open on September 23, 2025 and close on September 25, 2025. The payments and communications solutions provider aims to raise Rs 480 crore through a fresh issue and Rs 333 crore through an offer for sale (OFS).

We assess the company’s business, financials, strengths, risks and valuation to help you make an informed investing decision.

What the company does

Seshaasai Technologies is a multi-location, tech-led solutions provider serving the BFSI sector with payments, communications and fulfilment solutions where data security and compliance are central. Its proprietary platforms support recurring services that are critical to the industry’s day-to-day operations.

Beyond BFSI, it also offers IoT (Internet of Things) solutions across sectors. The company is among India’s top two payment card makers with a 31.9 per cent market share in FY25, up from 25 per cent in FY23, and is among the largest cheque leaf manufacturers in the country.

Track record and valuation

In terms of financials, Seshaasai Technologies appears to have fared decently, with revenue climbing by 13 per cent annually between FY23 and FY25. EBIT and profit after tax (PAT), too, saw a double-digit growth during the same period, surging by 38 per cent and 43 per cent, respectively. Such impressive numbers can be attributed to the fact that Seshaasai Technologies is one of the only two players currently that make payment cards in India and enjoys a sizable market share.

At the upper end of the price band (Rs 423), the company trades at nearly 31 times its FY25 earnings and 6.1 times its book value. There are no listed peers for comparison.

The good

Here are some of the key strengths of Seshaasai Technologies.

#1 Sizable market share

Seshaasai Technologies has built a strong position in India’s highly regulated payments solutions industry, ranking among the top two card manufacturers with a 31.9 per cent market share in FY25, up from 25 per cent in FY23. 

With over 1.4 billion cards in circulation in 2024 and a steady replacement cycle driven by expiries and security upgrades, demand remains resilient. The industry also offers long-term growth potential, with card volumes projected to reach 2.2 billion units and the market size expected to more than double by 2030.

#2 Consistent track record

The company boasts steady numbers, supported by technology-led operations and low costs that translate into healthy margins. Revenues rose from Rs 1,146 crore in FY23 to Rs 1,558 crore in FY24 before moderating to Rs 1,463 crore in FY25. EBITDA improved steadily, moving from Rs 207 crore in FY23 to Rs 370 crore in FY25, with margins expanding from 18 per cent to over 25 per cent. Multi-year contracts provide revenue visibility, while the company’s scalable, capital-light model supports strong operating leverage and cash flow generation. 

#3 Long-standing clientele

Seshaasai Technologies leverages its technology-driven approach to deliver customised solutions, helping it both retain long-standing clients and add new ones. Its customer base expanded from 355 in FY23 to 702 in FY25. Long-term relationships remain a strength, with clients of over five years contributing the bulk of revenues, jumping from 75 per cent in FY23  to 87 per cent in FY25. 

The bad

Let’s look at some of Seshaasai Technologies’ drawbacks.

#1 Client concentration

Seshaasai Technologies has grown its customer base from 355 in FY23 to 702 in FY25. However, a significant share of its revenue comes from a concentrated set of clients. This dependence means that losing or scaling back business from any key customer could materially impact its revenues, profitability and cash flows.

#2 Growth tied to a single industry

Seshaasai Technologies’ growth is closely tied to the BFSI sector, making it vulnerable to industry downturns, regulatory changes or reduced outsourcing trends. Consolidation of public sector banks has already impacted demand, and similar developments could weigh on revenues and profitability. In addition, margin pressures faced by BFSI clients may translate into pricing pressure for the company, potentially affecting its financial performance and cash flows.

Where will the IPO proceeds go?

Of the fresh issue size of Rs 480 crore, Seshaasai Technologies plans to utilise around Rs 198 crore to expand its existing manufacturing units, while Rs 230 crore will be used for the repayment of debt. The remaining funds will be deployed for general corporate purposes.

So, should you apply for the Seshaasai Technologies IPO?

The thrill of IPOs can be tempting, but true wealth is built on patience and quality. At Value Research Stock Advisor, we focus on companies with robust fundamentals and a record of delivering results. With our guidance on when to buy, hold or sell, you can steer clear of market noise and stay on course for long-term gains.

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