Seshaasai Technologies shares make a muted market debut; stock list at 3% premium

Shares of Seshaasai Technologies made a flat Dalal Street debut on Tuesday, September 30, as the specialized payment solutions player was listed at Rs 436 on NSE, a premium of 3.07 per cent over issue price of Rs 423 apiece. The stock kicked-off its maiden trading session at a premium of 2.13 per cent over the issue price at Rs 432 on BSE.

As of the listing price, retail investors, who received a single lot of 35 equity shares, made a profit of Rs 455 on their investment of Rs 14,805. Similarly, HNI investors, who received 14 lots consisting of 490 equity shares, made a profit of Rs 6,370 on their investment of Rs 2,07,270.

Listing of Seshaasai Technologies has been much below the expectations. Ahead of its debut, Seshaasai Technologies was commanding a grey market premium (GMP) Rs 40-42 per share in the unofficial market, suggesting a listing pop of nearly 9-10 per cent for the investors. The grey market premium stood around Rs 55-60 per share, during the bidding period.

The IPO of Seshaasai Technologies ran for subscription between September 23 and September 25. It had offered its shares in the price band of Rs 402-423 per share with a lot size of 35 shares. The company raised a total of Rs 813.07 crore from its IPO, which included fresh share sale Rs 480 crore and an offer-for-sale (OFS) of up to 78,74,015 equity shares worth Rs 333.07 crore.

The issue was overall subscribed 68.13 times, fetching over 17.53 lakh applications, attracting bids worth Rs 39,680 crore. The portion for qualified-institutional bidders (QIBs) was subscribed 189.63 times. The allocation for non-institutional investors (NIIs) was booked 49.89 times. The portions for retail investors and employees were subscribed 9.17 times and 9 times, respectively.

Incorporated in 1993, Mumbai based-Seshaasai Technologies is a technology-driven, multi-location solutions provider, specializing in payment solutions, as well as communications and fulfilment services, primarily catering to the banking, financial services, and insurance (BFSI) industry.

Majority of the brokerage firms tracking the issue were positive on this issue, suggesting to subscribe to it. IIFL Capital Services, SBI Capital Markets and ICICI Securities were the book running lead managers of Seshaasai Technologies IPO and MUFG Intime India served as the registrar of the issue.