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Even although Shashikanth Suryanarayanan has constructed Sedemac as a hard-nosed entrepreneur who values conventional metrics of a sound enterprise greater than narratives, it’s arduous to take the professor out of him.
(Even brokerages and finance platforms are addressing him as “Professor” of their IPO evaluation.)
In the previous few years, he has carved out time from operating the corporate to periodically educate traders on what it takes to construct an IP-based expertise product firm. The $100 million spherical in 2024 got here principally from such traders and was nearly solely a secondary spherical.
Despite vital investor curiosity, Sedemac didn’t elevate main capital.
The Rs 1,087 crore IPO immediately is as soon as once more a proposal on the market (OFS), during which newer traders, akin to A91 and 360 One, amongst others, will promote their shares. An OFS-only IPO just isn’t uncommon today. LG Electronics, WeWork, and, previous to that, Hyundai Motors India, raised practically Rs 43,000 crore on the inventory alternate with out taking any cash into the corporate.
But Suryanarayanan goes to nice lengths to clarify why Sedemac isn’t promoting shares to capitalise itself. In the 9 months of FY26, the corporate reported income of Rs 770 crore, greater than the Rs 658 crore it garnered in FY25. Its income mirror that working leverage is kicking in—at Rs 71 crore in 9M FY26, it’s 51% increased than within the earlier fiscal.
For each extra greenback of income, he says, the corporate wants lower than $0.2 of capex and $0.2 of working capital. The firm can generate this from inside accruals. Suryanarayanan believes 20%+ of Ebitda can “easily fund 30–40% growth”. If the corporate grows quicker than that, it’d must tackle debt. It is aware of the drill; for six years till June 2024, the corporate didn’t elevate any cash.
That’s environment friendly capital use in an automotive electronics enterprise that’s R&D- and capex-heavy. At an annualised ahead FY26 price-to-earnings a number of of 62–63, it’s dearer than Indian rivals akin to Sona Comstar (54–56X) and world leaders like Bosch (37X).
In late 2024, when I asked Suryanarayanan why, whilst a personal firm, he had been holding half-yearly investor calls, he stated: “Most folks don’t imagine in [or understand fresh technology].
