Highlights
| Issue Size – 8,043,300 shares | Issue Open/Close – 04 Mar / 06 Mar, 2026 |
| Price Band (Rs.) 1287 – 1352 | Issue Size (Rs.) ~ 10,870 mn |
| Face Value (Rs) – 10 | Lot Size (shares) – 11 |
SEDEMAC Mechatronics Limited (SEDEMAC), incorporated in 2007, is a supplier of control-intensive, critical-to-the-application electronic control units (ECUs) to leading original equipment manufacturers (OEMs) in the mobility and industrial markets in India, the United States, and Europe.
The company offers a comprehensive portfolio that includes (i) supervisory auto mains failure GCs; (ii) EFI ECUs; (iii) battery chargers; (iv) eGov controllers; and (v) Digital automatic voltage regulators.
The company operates 2 technical centers and 2 operational manufacturing facilities, all located in Pune, Maharashtra, India. The technical centers comprise substantial lab space dedicated to product development, prototyping, and validation activities, and these facilities fulfill the majority of their testing and validation requirements in-house to maintain agility.
The company will not receive any proceeds out of the ~Rs. 10,870 mn offer, and all the offer proceeds will be received by the selling shareholders after deduction of offer-related expenses and relevant taxes thereon, to be borne by the selling shareholders.
Key Highlights
- The two-wheeler industry sales are projected to grow at 6-8 percent CAGR and reach domestic sales volumes of 29-31 mn by FY31. Of this, the e2W segment is projected to clock a healthy CAGR of 40-45 percent during the period, and the ICE 2W vehicle segment is expected to grow at a pace of 2-4 percent CAGR.
- SEDEMAC’s majority revenue is attributed to products that incorporate novel control technologies, conceived and developed entirely in-house, enabling them to offer fresh proprietary solutions, providing distinct value to customers.
- They are the first Indian company to develop, design, and manufacture sensorless commutation (SLC)-based integrated starter generators (ISG) ECUs for 2/3-wheeler internal combustion engine (ICE)-powered vehicles.
- The company held around 35 percent of the domestic market share of the ISG ECU market in terms of volume as of Q3FY26. The company is also a leader in India for Genset Controllers (GC) with an estimated market share of 75 percent as of Q3FY26 and is among the key players globally with roughly 14 percent of the market share in the GC and EFI ECU market for FY25.
- The company’s core strategies include (i) (i) expanding technologies and products across multiple large markets, (ii) driving technology and product differentiation, (iii) offering a suite of control-intensive products for each market, (iv) building and sustaining partnerships with market leaders, and (v) leveraging synergies across markets, products, and supply chains.
- Sales of the company have grown by 24.8 pct CAGR over FY23-25, and EBITDA and profit grew by 59.7 pct CAGR and 134.3 pct CAGR over the same period. During FY25 the sales of the company jumped by 24.1 pct YoY to Rs. 6,584 mn. While EBITDA of the company grew by 55.2 pct YoY to Rs. 1,209 mn and EBITDA margin expanded by 369 bps to 18.4 pct YoY in FY25. During FY25, the company reported a profit of Rs. 470.45 mn, which grew 700 percent YoY.
Key Risk
- The company’s revenue is highly concentrated, with over 75 percent generated by its top client, i.e., TVS Motor, and over 90 percent of its revenue from its top 3 customers for the last three fiscal years.
- Inability to meet consistent and timely delivery expectations of customers may have a material adverse effect on business, reputation, financial condition, results of operations, and growth prospects.
- Inability to ensure its product propositions remain more compelling than those of competitors may have a material adverse effect on its business, financial condition, results of operations, and growth prospects.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | 9MFY |
| Revenue from Operations | 4,230 | 5,307 | 6,584 | 7,707 |
| EBITDA | 474 | 779 | 1,209 | 1,564 |
| EBITDA Margin % | 11.2% | 14.7% | 18.4% | 20.3% |
| Profit | 86 | 59 | 470 | 715 |
| Profit Margin % | 2.0% | 1.1% | 7.1% | 9.3% |
| ROE % | 7.8% | 4.9% | 22.0% | 20.0% |
| ROCE % | 17.5% | 28.9% | 33.8% | 32.5% |
Peer Comparison
| Peer Comparison | SEDEMAC Mechatronic | Schaeffler India | Bosch Ltd. | Sona BLW | ZF Commercial |
| Sales (Mn) | 6,584 | 82,324 | 180,874 | 35,460 | 38,309 |
| EBITDA (Mn) | 1,209 | 15,637 | 31,258 | 11,021 | 7,392 |
| EBITDA Margin % | 18.4% | 19.0% | 17.3% | 31.1% | 19.3% |
| Profit (Mn) | 470 | 9,389 | 20,152 | 5,997 | 4,607 |
| Profit Margin % | 7.1% | 11.4% | 11.1% | 16.9% | 12.0% |
| ROE % | 22.0% | 18.5% | 15.6% | 14.2% | 15.4% |
| ROCE % | 33.8% | 24.2% | 19.9% | 16.5% | 19.0% |
Valuation
SEDEMAC Mechatronics Limited develops and produces powertrain controllers, motor control solutions, and integrated starter generators for the automotive and industrial sectors. The firm concentrates on innovation with patented sensorless motor control solutions, which allow the company to control motor performance accurately without the need for external sensors. At the upper end of the price of Rs. 1,352, the issue quotes a PE of 62x on FY26 annualized earnings. The issue looks fully priced.
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