From Sedemac to Atomberg: A91 Partners’ manufacturing bets to likely reap over 8X returns

From Sedemac to Atomberg: A91 Partners’ manufacturing bets to likely reap over 8X returns

A91 Partners’ bets on Indian manufacturing companies are beginning to show up in the numbers.

The investment firm has cumulatively invested around Rs 443 crore across consumer appliances maker Atomberg and automotive electronics company Sedemac Mechatronics through a mix of primary and secondary transactions, as per Moneycontrol’s estimates.

A91 has already sold shares worth nearly Rs 945 crore in the two companies, translating into more than 2X returns on its investments, while its remaining stakes are worth roughly Rs 2,700 crore, leaving room for further gains.

The two bets are different but share a common thread. Both Atomberg and Sedemac were founded by IIT-Bombay alumni and built businesses around engineering and manufacturing capabilities.

While Atomberg had started as a consumer-facing appliance maker, it is now scaling up its business-to-business (B2B) vertical. Sedemac, on the other hand, built a B2B business supplying electronic control systems to automotive and industrial customers.

A91 Partners, Atomberg and Sedemac did not immediately respond to Moneycontrol’s queries.

A91 is currently the largest shareholder in Mumbai-based Atomberg with a 21.02 percent stake. It first invested in the company in 2019.

While Atomberg has filed its IPO papers with the capital markets regulator, the company is yet to arrive at a definitive valuation as it remains in the price-discovery phase.

Sources however indicated Atomberg could command a valuation of around Rs 6,500-7,000 crore at the time of its listing. At that valuation range, A91’s remaining stake would be worth Rs 1,300-1,500 crore, per Moneycontrol’s analysis.

To be sure, the value of the stake could change slightly as the company inches closer to its public market listing.

A91 has put around Rs 143 crore into the company through primary and secondary transactions and has already sold shares worth about Rs 445 crore.

This means A91 has realised more than three times its original investment in Atomberg, while retaining a stake worth nearly 10 times the capital it put in.

Atomberg’s foray into B2B manufacturing could give it another route to monetise offerings while scaling its own consumer brand.

Also Read: Atomberg IPO decoded: Issue size, investor exits, financials and key risks

For A91, the Sedemac investment has produced a similar outcome despite it being a more recent investment.

A91 currently holds around 48.3 lakh Sedemac shares, representing 10.94 percent of the company’s equity, according to the latest shareholding data.

For A91, the stake in Sedemac is currently worth around Rs 1,300 crore based on the share price as of 12 noon on August 24.

A91 first invested in Sedemac in 2024 and infused a total of Rs 300 crore in the company through primary and secondary transactions.

It has since diluted some stake and sold Sedemac shares worth around Rs 500 crore, including selling around the company’s IPO and in the months that followed.

A91 has therefore already recovered a significant portion of its original investment while continuing to hold a stake worth more than four times the capital deployed in Sedemac.

To be sure, the Sedemac investment in fairly new and could result in more gains for A91 Partners.

The returns also underline a broader shift among investors towards manufacturing businesses in India. A91’s third fund, which raised $665 million, has manufacturing among its focus areas alongside consumer, financial services, healthcare and technology.

The broader investor interest in manufacturing has also been driven by the push to build domestic supply chains and create companies that can capture more value from India’s engineering capabilities.

A91’s bets come as manufacturing increasingly moves up the agenda for India-focused investors.

Manufacturing-led companies now account for more than 25 percent of Catamaran’s $1.3 billion AUM, with Narayana Murthy’s family office looking to deepen exposure to areas such as precision manufacturing, motors, power equipment and other components.

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