With 2 more listings in pipeline, how IIT Bombay is churning out IPO multibaggers
The startup ecosystem around the Indian Institute of Technology (IIT) Bombay is increasingly translating into wealth creation as companies incubated or supported by the institute's entrepreneurship arm head toward the public markets.
Through its incubator, the Society for Innovation and Entrepreneurship (SINE), IIT Bombay has already seen significant gains from startup listings such as ideaForge and is now poised for another windfall from the IPO of Sedemac Mechatronics.
With companies like Atomberg Technologies and Gupshup also exploring public listings, the institute's long association with technology startups is beginning to deliver substantial financial returns.
ideaForge: Early success story
One of the earliest examples of this success is ideaForge Technology, India’s leading drone manufacturer. The company was founded in 2006 by IIT Bombay alumni Ankit Mehta, Rahul Singh and Ashish Bhat and was incubated at SINE during its formative years.
ideaForge launched its IPO in July 2023 and the issue drew massive investor interest, being subscribed about 106 times. The stock listed at a strong premium, briefly doubling shareholder wealth on its debut.
For SINE, the listing translated into a meaningful monetisation opportunity. The incubator held roughly 1 lakh shares in the company prior to the IPO. At the upper end of the IPO price band of Rs 672 per share, the value of that stake was estimated at around Rs 6-7 crore.
SINE partially exited during the offer for sale, selling about 22,600 shares and realising roughly Rs 1.52 crore from the transaction, while continuing to retain a stake in the company.
Sedemac: A much larger windfall
The institute is now set to benefit even more from the IPO of Sedemac Mechatronics, another startup that emerged from the IIT Bombay ecosystem.
Sedemac was founded in 2007 by Shashikanth Suryanarayanan, an associate professor in the institute’s mechanical engineering department, along with other early team members who were students or researchers associated with the campus.
The company has grown into a manufacturer of electronic control units and genset controllers used across two-wheelers, electric vehicles and industrial applications.
SINE backed the company in its early stages and currently holds 4.08 lakh shares, representing about 0.92% stake.
At the upper end of the IPO price band of Rs 1,352 per share, the value of SINE’s holding stands at roughly Rs 55 crore.
As part of the offer for sale, the incubator plans to sell 2.04 lakh shares. At the IPO price, this portion alone would fetch around Rs 27.58 crore.
The scale of the return is remarkable given the acquisition price. SINE acquired the shares at an average cost of Rs 0.01 each, meaning the 2.04 lakh shares being sold cost only about Rs 2,040.
At the IPO price, the sale implies a gain of about Rs 27.58 crore and a return of roughly 1.3 lakh times the original investment. Even after the partial exit, SINE will continue to hold another 2.04 lakh shares in the company, leaving it with a residual stake worth roughly Rs 27-28 crore at the IPO price.
More IPO candidates emerging
The IIT Bombay startup ecosystem could see more companies head to the stock market in the coming years.
Consumer appliances company Atomberg Technologies is among the startups exploring a public listing. The Temasek-backed firm is weighing an IPO in Mumbai that could raise around $200 million, according to Bloomberg.
Founded in 2012 by IIT Bombay alumni Manoj Meena and Sibabrata Das, Atomberg began by manufacturing energy-efficient ceiling fans and has since expanded into products such as mixer grinders, water purifiers and smart locks.
The company has attracted several prominent investors over the years. In 2023 it raised $86 million in funding from Temasek, Steadview Capital, Jungle Ventures and Inflexor Ventures.
Another startup with links to IIT Bombay’s incubation ecosystem is Gupshup, a conversational messaging platform founded by Beerud Sheth.
The company received early incubation support from SINE during its formative years and has since grown into one of the world’s largest messaging platforms for businesses.
Gupshup recently raised $60 million in fresh funding from Globespan Capital Partners along with debt financing from EvolutionX Debt Capital. The San Francisco-headquartered firm is also considering shifting its domicile to India ahead of a potential public listing in the country within the next one to two years.
Founded in 2004, Gupshup processes more than 120 billion messages annually for over 50,000 businesses across 130 countries.
From campus labs to public markets
For IIT Bombay, the growing list of IPO-bound startups highlights how academic incubation programs are increasingly shaping India's startup economy. Through SINE, the institute has supported hundreds of early-stage ventures over the past two decades. While many remain private, a handful are now reaching a stage where they can tap public markets.
As companies like Sedemac, Atomberg and potentially Gupshup move closer to listing, IIT Bombay's long-running experiment with technology incubation is beginning to translate into tangible financial returns alongside entrepreneurial success.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Through its incubator, the Society for Innovation and Entrepreneurship (SINE), IIT Bombay has already seen significant gains from startup listings such as ideaForge and is now poised for another windfall from the IPO of Sedemac Mechatronics.
With companies like Atomberg Technologies and Gupshup also exploring public listings, the institute's long association with technology startups is beginning to deliver substantial financial returns.
ideaForge: Early success story
One of the earliest examples of this success is ideaForge Technology, India’s leading drone manufacturer. The company was founded in 2006 by IIT Bombay alumni Ankit Mehta, Rahul Singh and Ashish Bhat and was incubated at SINE during its formative years.
ideaForge launched its IPO in July 2023 and the issue drew massive investor interest, being subscribed about 106 times. The stock listed at a strong premium, briefly doubling shareholder wealth on its debut.
For SINE, the listing translated into a meaningful monetisation opportunity. The incubator held roughly 1 lakh shares in the company prior to the IPO. At the upper end of the IPO price band of Rs 672 per share, the value of that stake was estimated at around Rs 6-7 crore.
SINE partially exited during the offer for sale, selling about 22,600 shares and realising roughly Rs 1.52 crore from the transaction, while continuing to retain a stake in the company.
Sedemac: A much larger windfall
The institute is now set to benefit even more from the IPO of Sedemac Mechatronics, another startup that emerged from the IIT Bombay ecosystem.
Sedemac was founded in 2007 by Shashikanth Suryanarayanan, an associate professor in the institute’s mechanical engineering department, along with other early team members who were students or researchers associated with the campus.
The company has grown into a manufacturer of electronic control units and genset controllers used across two-wheelers, electric vehicles and industrial applications.
SINE backed the company in its early stages and currently holds 4.08 lakh shares, representing about 0.92% stake.
At the upper end of the IPO price band of Rs 1,352 per share, the value of SINE’s holding stands at roughly Rs 55 crore.
As part of the offer for sale, the incubator plans to sell 2.04 lakh shares. At the IPO price, this portion alone would fetch around Rs 27.58 crore.
The scale of the return is remarkable given the acquisition price. SINE acquired the shares at an average cost of Rs 0.01 each, meaning the 2.04 lakh shares being sold cost only about Rs 2,040.
At the IPO price, the sale implies a gain of about Rs 27.58 crore and a return of roughly 1.3 lakh times the original investment. Even after the partial exit, SINE will continue to hold another 2.04 lakh shares in the company, leaving it with a residual stake worth roughly Rs 27-28 crore at the IPO price.
More IPO candidates emerging
The IIT Bombay startup ecosystem could see more companies head to the stock market in the coming years.
Consumer appliances company Atomberg Technologies is among the startups exploring a public listing. The Temasek-backed firm is weighing an IPO in Mumbai that could raise around $200 million, according to Bloomberg.
Founded in 2012 by IIT Bombay alumni Manoj Meena and Sibabrata Das, Atomberg began by manufacturing energy-efficient ceiling fans and has since expanded into products such as mixer grinders, water purifiers and smart locks.
The company has attracted several prominent investors over the years. In 2023 it raised $86 million in funding from Temasek, Steadview Capital, Jungle Ventures and Inflexor Ventures.
Another startup with links to IIT Bombay’s incubation ecosystem is Gupshup, a conversational messaging platform founded by Beerud Sheth.
The company received early incubation support from SINE during its formative years and has since grown into one of the world’s largest messaging platforms for businesses.
Gupshup recently raised $60 million in fresh funding from Globespan Capital Partners along with debt financing from EvolutionX Debt Capital. The San Francisco-headquartered firm is also considering shifting its domicile to India ahead of a potential public listing in the country within the next one to two years.
Founded in 2004, Gupshup processes more than 120 billion messages annually for over 50,000 businesses across 130 countries.
From campus labs to public markets
For IIT Bombay, the growing list of IPO-bound startups highlights how academic incubation programs are increasingly shaping India's startup economy. Through SINE, the institute has supported hundreds of early-stage ventures over the past two decades. While many remain private, a handful are now reaching a stage where they can tap public markets.
As companies like Sedemac, Atomberg and potentially Gupshup move closer to listing, IIT Bombay's long-running experiment with technology incubation is beginning to translate into tangible financial returns alongside entrepreneurial success.
( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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