Capillary Technologies IPO day 1: The initial public offering (IPO) of Software company Capillary Technologies India opened for public subscription on Friday, November 14 and will remain so until Tuesday, November 18. The mainboard issue is a combination of a fresh issue of 60 lakh shares to raise ₹345 crores and offer for sale (OFS) of 92.3 lakh shares for ₹532.50 crore.
Capillary Technologies IPO price band has been fixed in the range of ₹549 to ₹577 per equity share.
JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Limited are the book-running lead managers of the Capillary Technologies IPO, while MUFG Intime India Pvt. Ltd. is the registrar of the issue.
Capillary Technologies IPO share allotment is expected to be finalised on Wednesday, November 19. Successful bidders can get the shares on Thursday, November 20, and those who fail to get the allotment will get the refunds on the same day.
Capillary Technologies IPO will list on the BSE and the NSE on Friday, November 21.
Meanwhile, the company on Thursday said it had raised ₹394 crore from anchor investors ahead of the IPO.
Capillary Technologies, as per the Red Herring Prospectus (RHP), is a software product company that offers artificial intelligence (AI)-based cloud-native software-as-a-service (SaaS) products and solutions primarily to enterprise customers globally.
Capillary Technologies IPO subscription status
By 10:10 am on Friday, the issue had not seen any subscription.
Capillary Technologies IPO GMP Today
It appears that investors are not upbeat about the IPO as the latest grey market premium (GMP) of Capillary Technologies on November 14 was nil. This indicated the stock may list at par with the issue price.
Capillary Technologies IPO review
Seema Srivastava, Senior Research Analyst at SMC Global Securities, underscored that Capillary Technologies operates in a high-growth global loyalty management market and has built a strong AI-driven SaaS platform with deep client integration and robust Net Revenue Retention of over 112–143 per cent.
The company has a presence across 47 countries, with a diversified portfolio of 413 brands, and strong traction in the US market highlights its scalability.
Financially, Capillary has shown a turnaround with FY25 revenue growing to ₹598 crore and profitability improving meaningfully, supported by operating leverage and successful acquisitions.
However, Srivastava underscored that the IPO valuation is steep, with a post-issue P/E of 171 times to 180 times and P/B of 4.5 times to 4.7 times, which is high even by SaaS standards, raising concerns about near-term listing gains.
Risks also include heavy customer concentration as the top 10 clients contribute nearly 56 per cent of revenue, and reliance on continuous innovation and skilled talent. The company has also experienced negative cash flows in the past, and integration risks from acquisitions remain elevated, said Srivastava.
Capillary Technologies IPO: Should you apply?
As per Srivastava, the Capillary Technologies IPO presents a mixed proposition.
“While the long-term story is strong due to AI-led products and global demand, the high valuation and concentration risks make the IPO suitable mainly for investors with a high-risk appetite. Conservative or listing-gain–oriented investors may consider avoiding,” said Srivastava.
Swastika Investmart recommends avoiding this IPO as the company has reported a net profit for the first time in FY25 after significant losses in previous years.
Capillary Technologies’ suffered a loss of ₹88.56 crore in FY23, which declined to ₹68.35 crore in FY24. In FY25, the company earned a profit of ₹14.15 crore.
Moreover, a substantial part of the total IPO size consists of an OFS.
Swastika highlighted that the company operates in the highly competitive global SaaS space, going up against global giants like Salesforce, Adobe, and HubSpot.
“Based on the company’s financial data and market analysis, the valuation for the Capillary Technologies IPO appears highly aggressive; hence, it is recommended to avoid this IPO,” said Swastika.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
