Imagine putting in a bid for a promising IPO — and knowing that by evening, the shares might list with a 10–15% premium. That’s the kind of excitement investors are feeling today, on Seshaasai Technologies IPO Day 3. The final day of bidding often reveals sharp shifts in demand, investor sentiment, and speculation. As we watch this ₹813 crore offering close, the Seshaasai Technologies IPO Day 3 narrative is more than numbers — it’s about timing, expectations, and whether this ride is worth being on.
In this article, we’ll walk through:
- How the IPO has fared so far (subscription, GMP, demand splits)
- What the grey market is hinting
- Strengths, risk signals, and valuation checks
- What to watch after allotment
- Tips, pitfalls, and how to position if you applied
Let’s dive in — you don’t need to be a market pro; think of this as a guided telescope into the world of IPOs.
1. The IPO Structure & Use of Proceeds
To make sense of demand and valuation, you first need to map how this IPO is built.
🧩 Issue Composition
- Total issue size: ₹813 crore (combined fresh issue + OFS) Zerodha+2mint+2
- Fresh issue: ₹480 crore (new equity) mint+2Value Research Online+2
- Offer For Sale (OFS): ~78.74 lakh shares, valued ~₹333 crore at upper band mint+2mint+2
- Price band: ₹402 to ₹423 per share The Economic Times+4Zerodha+4mint+4
- Lot size: 35 shares (minimum investment ~₹14,805) Zerodha+1
- Timeline: Subscription from 23 to 25 September; allotment on 26, listing likely 30 September. NDTV Profit+3Zerodha+3Value Research Online+3
🛠 Use of Fresh Issue Funds
Of the ₹480 crore fresh infusion:
- ~₹198 crore for capital expenditure (expanding existing manufacturing units) mint+2mint+2
- ₹300 crore to repay existing debt or prepay borrowings mint+2mint+2
- Remainder (balance) for general corporate purposes Zerodha+3mint+3mint+3
That mix suggests the company is using the IPO both as growth capital and as a debt-cleaning tool — a signal usually viewed positively by the market.
Key takeaway: A well-balanced IPO structure lends credibility — some fresh capital for growth, plus deleveraging.
2. How Day 1 & Day 2 Played Out
By the time Day 3 opened, many market watchers had already formed expectations.
📈 Day 1: Cautious Start
- On Day 1, the subscription stood around 0.99x by end-of-day, meaning it wasn’t fully subscribed. ICICI Direct+1
- Around midday, however, there were reports of 35% subscription — a mixed start. The Economic Times
This is not unusual: IPOs often take time to gain momentum as word spreads.
🚀 Day 2: Sharp Surge
- By the end of Day 2, subscription shot up to 3.09x overall. The Financial Express+3mint+3mint+3
- Breaking it down:
- Retail (RII) portion: ~2.92x Moneycontrol+3The Financial Express+3mint+3
- Non-institutional (NII): ~5.99x (or “close to 6x”) The Financial Express+2mint+2
- QIB (institutional): ~1.13x Value Research Online+3mint+3The Financial Express+3
- Interest from anchor investors: ₹243+ crore locked in, shares allotted at ₹423 each. Value Research Online+3mint+3mint+3
So Day 2 was the real show. Momentum picked up sharply, mainly driven by retail and NII demand.
Key takeaway: The IPO showed its teeth on Day 2, riding the momentum wave into Day 3.
3. Day 3 LIVE Signals & Grey Market Premium (GMP)
The final day often carries high drama. Let’s pull apart what the signals suggest.
📌 Subscription Tracking
By mid-Day 3, the IPO was already seeing strong demand: ~3.5x (approx) at some timestamps. mint
Category-wise:
- QIB: 1.13x
- NII: ~7.27x
- Retail: ~3.21x
- Employee quota: ~4.41x mint
These demand splits reflect strong appetite from non-institutional investors, which often is a bullish sign for listing enthusiasm.
🧾 GMP — The Sentiment Dial
- The grey market premium (GMP) on this IPO was ₹55 at one point on Day 3. mint+1
- If you add that to the upper band (₹423), the implied listing price becomes ₹478 — about 13% premium. NDTV Profit+2mint+2
- Note: GMP is an informal gauge, not official. It reflects sentiment, speculation, and demand in unregulated trades. NDTV Profit
Thus, the market is pricing in a double-digit listing gain — enough to make investors salivate.
🕔 Final Countdown
The IPO bidding window closes at 5:00 PM today. If subscribe volume keeps up, the final tally might stretch beyond 3.5x. But the GMP trend and demand splits already lock in expectations.
Key takeaway: A strong GMP and surging Day 3 demand suggest the market is anticipating a healthy listing pop, unless macro volatility intervenes.
4. Valuation, Strengths & Red Flags
A vivid IPO story needs checks — because speculating without risk awareness is risky.
✅ Strengths / Positives
- Dominant positioning in payments / card manufacturing
- Seshaasai claims to be among the top two card manufacturers in India (market share ~31.9% in FY25) Value Research Online+1
- As physical cards get replaced, there is recurring demand for renewals, upgrades, security updates (EMV, chip upgrades).
- The company also offers IoT, secure print, communication solutions — diversifying its revenue streams. Value Research Online+1
- Growth track record & margin expansion
- From FY23 to FY25, revenue growth ~13% p.a. Value Research Online
- PAT surged sharply (~43% over 2 years) Value Research Online
- Healthy margins and return ratios: RoE ≈ 34–35–36% range, RoCE in low-30s. mint+2mint+2
- Use of IPO funds is credit positive
- Debt repayment reduces risk, improves balance sheet
- Capex for expansion suggests management sees further growth opportunity
- Anchor investor interest
- Anchors committing large sums signals institutional confidence (though note these are before public bidding). Value Research Online+3mint+3mint+3
⚠ Risks & Caveats
- Client concentration & sector reliance
- A handful of large BFSI clients likely contribute significantly to revenue; losing one can dent top line.
- Dependence on a single sector (banking / financial services) increases vulnerability to regulatory, competitive or policy shifts.
- Revenue softness & deceleration signs
- Some articles point to potential slowing growth or lower incremental opportunities in card issuance vs digital transactions. The Economic Times
- The expansion into IoT / NFC is still small in revenue share — not yet a material offset.
- High valuation multiples & peer comparison scarcity
- At ₹423, the P/E is ~30.8× FY25 earnings; P/B ~6.1× Value Research Online
- There are few truly comparable listed peers, which complicates relative valuation checks.
- If listing pops heavily, it may draw profit-taking pressure.
- Regulatory / technology disruption
- Shift towards cardless, tokenization, digital / virtual cards, open banking trends could erode long-term card demand
- Supply chain or raw-material constraints (secure card material, chips) remain external risks
Key takeaway: The IPO is compelling — but it’s not without risk. The reward is colored by how well demand sustains post-listing and how management executes.
5. What Happens After Allotment
Often overlooked is the post-allotment phase. Here’s what to track.
📅 Timeline & Technicals
- Allotment date: 26 September Zerodha+1
- Refunds / share credit: Likely 29 September Zerodha+1
- Listing: Expected 30 September on BSE & NSE NDTV Profit+3Zerodha+3Value Research Online+3
📉 Listing Behavior to Watch
- Opening gap: Will it gap up sharply, or will gains be tempered by selling pressure?
- Volume & liquidity: If volumes are thin, the stock may be volatile.
- Lock-in expirations: Anchor investors usually have 30% or partial lock-in; their selling over time can exert pressure.
- Trailing performance: Watch 5-day, 10-day returns compared to broader indices.
🧮 Suggested Post-Listing Strategy
- If it opens with 10–13% gains, consider partially booking profits if your cost is low.
- Hold a core for medium term (6–12 months) if fundamentals hold and management executes.
- Set stop-loss thresholds — e.g., “if price falls below X, exit.”
- Watch quarterly results — the real test begins after listing.
Key takeaway: A promising IPO doesn’t guarantee smooth sailing after listing. Active monitoring and flexibility are key.
6. Do’s, Don’ts & Tips for Day 3 and Beyond
Let me wear the “experienced IPO-watcher” hat and give you some ground rules you won’t find in every blog.
✅ Do’s
- Use small “cover” bids ahead of closing time — often late orders push subs marginally more.
- Stay updated on GMP trends — though volatile, spikes or dips can hint at demand shifts.
- Keep your limit price mindful — don’t blindly chase the top band if valuation feels steep.
- Be realistic with returns — aim for 8–15% listing gain, not 50%.
- Maintain margin of safety — don’t invest more than you’re willing to have tied up for weeks.
❌ Don’ts / Common Mistakes
- Don’t assume GMP will materialize exactly (it’s speculative).
- Avoid overexposure — even good IPOs can dip after listing.
- Don’t ignore red flags (weak client base, sector risk) — gains can evaporate quickly.
- Don’t hold emotions too tightly. If fundamentals break, be ready to exit.
🧠 Investor Mindset
Think of IPO investing as a hybrid between short-term trade and long-term equity ownership. The first few days are about sentiment; later periods are about execution, business growth, and delivering earnings.
7. Final Words & Outlook
As of midday on Seshaasai Technologies IPO Day 3, the stock has shown all the hallmarks of a high-interest public offering: strong demand, rising GMP, and sharp retail/NII participation. The expectation of a 13% listing gain is baked into the sentiment. But between the promise and reality lies a path strewn with volatility, execution risk, and regulatory crosswinds.
If you subscribed, count yourself part of a high-moment market moment. But don’t let excitement blind you — stay disciplined, monitor signals, and be ready to act.
Let me leave you with this: “Markets love stories, but they reward substance.” This IPO is a story in motion — whether the substance holds will be known after the listing.
📣 CTA
Are you applying to this IPO? Or holding in gray market? Drop your views — what listing gain would satisfy you (5%, 10%, 15%)? Share your take, and let’s dissect it together.
