Sedemac block deal: 48.79 lakh shares changed hands at Rs 3,010 on NSE; here are likely sellers

Sedemac Mechatronics Ltd shares are in focus on Thursday as 48,79,838 (48.79 lakh) shares changed hands on the counter on NSE at Rs 3,010 apiece in a block, which was at 0.83 per cent discount to Wednesday's closing price of Rs 3,035.20. The shares sold were valued at Rs 1,468.83 crore.

To be sure, Sedemac shareholders were looking to sell up to 44.3 lakh shares in the company through block deal, as per term sheet. The floor price of the deal, as per the term sheet, stood Rs 3,000 apiece, which was at 1.2 per cent discount to Wednesday's closing price. The deal size stood at Rs 1,329 crore or $139 million at the floor price, Bloomberg reported.

Sellers included A91 Emerging Fund II, Xponentia Capital Partners, Xponentia Opportunities Fund II, Xponentia Opportunities, Mce Private Ltd and HDFC Life Insurance Co. The block deal would account for 10 per cent of the company's existing total shares outstanding.

Sedemac has over 15 years of track record of being operational in the niche segment of electronic controllers used in powertrain engines as well as non-automotive applications such as gensets. The company benefits from the strong technological background of its qualified promoter team, which lends support to client retention as well as new client acquisition. Repeat business from the existing clients as well as onboarding new clients has been reflected in the company’s robust revenue growth momentum over the years, ICRA noted this month.

It revised its outlook on Sedemac to 'Positive' from 'Stable', citing a significant increase in SEDEMAC’s scale of operations in FY25 and FY26 as reflected by 24 per cent and 61 per cent revenue growth, respectively. ICRA’s expected the revenue growth momentum would sustain, going forward.

ICRA took into account efforts undertaken by the company to gradually achieve higher product and customer diversification over the past two years, through rolling out of new products as well as onboarding of new clients, respectively.

"SEDEMAC has demonstrated a robust revenue growth momentum over the years (with its revenues demonstrating a compound annual growth rate (CAGR) of 34.5 per cent over the period FY2021-FY2026), aided by increasing penetration of its flagship product – the sensor-less integrated starter generator (ISG) among the domestic two/three-wheeler (2/3W) original equipment manufacturers (OEMs)," ICRA said.

It noted that the company has also developed various other electronics-based products, such as electronic fuel injector (EFI), motor control unit (MCU), and genset controllers (GCU), offering diversification to its
product portfolio.