SEDEMAC Mechatronics IPO shares listing today: What wild swings in GMP suggest for debut

Shares of SEDEMAC Mechatronics are set to make their Dalal Street debut on Wednesday, March 11 as the industrial solutions player is likely to have a soft landing at the bourses following a series of subdued listings and amid wild move in its premium in the grey market.

The grey market premium (GMP) of SEDEMAC Mechatronics has seen a wild move. Ahead of debut, it was commanding no premium, suggesting a flat listing for the investors. However, it was commanding a discount in the unofficial market during the bidding period, while its GMP jumped to Rs 90 and then fell to Rs 45-50 post allotment and it has completely vanished, lately.

The IPO of SEDEMAC Mechatronics ran for subscription between March 04-March 06. The company had offered its shares in the price band of Rs 1,287-1,352 per share with a lot size of 11 shares. The company eyed to raise a total of Rs 1,097 crore via IPO, which was entirely an offer-for-sale (OFS) of up to 4,41,61,500 equity shares.

The issue was overall subscribed only 2.68 with only 34,400 applications, fetching bids for Rs 2,043 crore. The portion for qualified-institutional bidders (QIBs) was subscribed 8.46 times. The quotas for non-institutional investors (NIIs) and retail bidders were undersubscribed at 77 per cent and 20 per cent, respectively. However, the employee portion was booked 2.95 times.

Incorporated in 2007, Pune-based SEDEMAC Mechatronics is a technology company specializing in control electronics. It designs and manufactures powertrain controllers, motor control products, and integrated starter-generator solutions for automotive and industrial applications. It focuses on innovation through patented sensor-less motor control technology.

Brokerage firms were mostly positive on the issue on a long-term basis. ICICI Securities, Axis Capital and Avendus Capital are the book running lead managers of the SEDEMAC Mechatronics IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE.