A91 Partners, Xponentia-Backed SEDEMAC FIles For IPO

Deeptech Startup SEDEMAC Bags $100 Mn From Xponentia, A91 In A Mix Of Primary & Secondary Funding

SUMMARY

SEDEMAC Mechatronics has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for an IPO comprising solely of an offer for sale (OFS) component

The Pune-based company counts large OEMs such as Tata Motors, Mahindra Group, Ashok Leyland and TVS Motors as its clients

Deeptech startup SEDEMAC Mechatronics has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for an IPO comprising solely of an offer for sale (OFS) component.

The company’s proposed IPO will see its investors and promoters cumulatively sell 80.43 Lakh shares. In this, A91 Partners will sell the highest 24.11 Lakh shares while 360 ONE Asset will sell 11.53 Lakh shares through its two holding entities. Meanwhile, Xponentia Capital would be selling 10.45 Lakh shares and Mace Pvt Ltd will be offloading 7.66 Lakh shares.

The startup’s founder and CEO Manish Sharma plans on selling 45,000 shares, while promoter group member Ashwini Amit Dixit will offload 67,500 shares.

While the exact size of the IPO is yet to be discerned, sources told Moneycontrol earlier this year that the firm would target an IPO size in a range of INR 800 Cr to INR 1,000 Cr.

ICICI Securities, Avendus Capital and Axis Capital are the book-running lead managers, and MUFG Intime India is the registrar. As the full offer is an OFS, the IPO only provides partial exits to existing shareholders and does not bring new capital into the company.

SEDEMAC was founded in 2007 by IIT-Bomaby professor Shashikanth Suryanarayana and his students Pushkaraj Panse, Amit Dixit and Manish Sharma. The startup was incubated at IIT-B.

The startup designs and manufactures advanced electronic control systems for mobility and industrial applications. Its products include engine and motor control units, integrated starter generators, fuel injection systems and genset controllers used in two-wheelers, three-wheelers, electric vehicles and small industrial powertrains.

The Pune-based company counts large OEMs such as Tata Motors, Mahindra Group, Ashok Leyland and TVS Motors as its clients.

On the financial front, SEDEMAC reported a net profit of INR 17.1 Cr in the first quarter of FY26. Its top line for the quarter under review stood at INR 217.4 Cr. For the full fiscal year FY25, the company’s net profit surged 8X YoY to INR 47.1 Cr while its operating revenue increased 24% YoY to INR 658.4 Cr.

The IPO filing comes about a year after the IIT-B incubated company raised $100 Mn in a mix of primary and secondary capital. The round included about $9 Mn of primary infusion at a $260 Mn valuation, while the remainder of the round featured secondary transactions that allowed Xponentia Capital Partners, A91 Partners and 360 ONE Asset to increase their stake in SEDEMAC.

The secondary component enabled full exits for early backers such as Nexus Venture Partners, TR Capital and Montane Ventures.

The fresh capital raised earlier this year was earmarked for building a new manufacturing plant and expanding SEDEMAC’s presence across India, the US and the EU.

Its previous funding rounds include an undisclosed investment from Iron Pillar in 2018 and about $7.5 Mn from Infosys cofounder Nandan Nilekani and Nexus Venture Partners in 2016.