IPO Watch: Capillary Technologies India Ltd refiled draft red herring prospectus (DRHP) to secure funding for its initial public offering (IPO). Previously, the company submitted its IPO documentation to SEBI in December 2021.
The Bengaluru-based firm provides artificial intelligence (AI)-driven cloud-native Software-as-a-Service (SaaS) products and solutions mainly for enterprise clients, aimed at enhancing the loyalty of their consumers and channel partners.
As one of the few competitors in the loyalty management sector, the company delivers comprehensive loyalty solutions, including its cutting-edge loyalty management platform (Loyalty+), connected engagement platform (Engage+), predictive analytics platform (Insights+), rewards management platform (Rewards+), and customer data platform (CDP) for its users.
With its headquarters in India, Capillary boasts a considerable global presence, maintaining offices in various locations, including the United States, the United Kingdom, the United Arab Emirates, and several Asian nations. As of March 31, 2025, the company serves over 390 brands across more than 45 countries.
In Fiscal 2025, Capillary Technologies reported a 13.93% increase in revenue from operations, rising from ₹525.10 crore in fiscal 2024 to ₹598.26 crore, primarily due to a rise in retainership and other services. The company achieved profitability in fiscal 2025, recording a profit of ₹13.28 crore compared to a loss of ₹59.38 crore in fiscal 2024.
IPO details
The IPO, which has a face value of ₹2 per equity share, includes a fresh issue of equity shares totaling ₹430 crore and an offer for sale of 18,331,386 equity shares by current shareholders.
The offer for sale includes shareholders selling as follows: up to 14,211,104 equity shares by Capillary Technologies International Pte. Ltd., up to 1,466,583 equity shares by Ronal Holdings LLC, up to 1,833,228 equity shares by Trudy Holdings, up to 759,938 equity shares by Filter Capital India Fund I, up to 10,800 equity shares by Sripathi Venkata Ramana Reddy, up to 24,349 equity shares by Harminder Sahni, up to 10,000 equity shares by Adarsh Reddy B, up to 8,384 equity shares by Sudhakar Reddy Katanguri, up to 3,000 equity shares by Sripathi Damodar Reddy, and up to 4,000 equity shares by Manjunath Nanjaiah.
The funds from the fresh issuance, totaling ₹120 crore, will be used to cover the costs of its cloud infrastructure; ₹151.54 crore will go toward investment in research, design, and development of its products and platform; ₹10.32 crore will be allocated for acquiring computer systems for its operations; funds will also be used for growth through unspecified acquisitions; and for general corporate purposes.
The book-running lead managers are JM Financial Limited, IIFL Capital Services Limited, and Nomura Financial Advisory and Securities (India) Private Limited, while MUFG Intime India Private Limited serves as the registrar for the issue.
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