SEDEMAC Mechatronics pulls-off surprise on market debut; shares list at 14% premium

Shares of SEDEMAC Mechatronics made a surprising stock market debut on Wednesday, March 11 as the industrial solutions player was listed at Rs 1,535 on NSE, a premium of 13.54 per cent over its issue price of Rs 1,352. Similarly, the stock was listed with a premium of 11.69 per cent at Rs 1,310 on BSE. Investors made a profit of more than Rs 2,000 on each lot.

The listing of SEDEMAC Mechatronics has been above expectations. Ahead of debut, it was commanding no grey market premium (GMP), 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.

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.