Capillary Technologies IPO Reaches Final Day of Subscription
The initial public offering (IPO) of software firm Capillary Technologies India is set to conclude today, November 18. The public subscription for this mainboard issue began last Friday, November 14, marking a significant step for the AI-driven SaaS company.
IPO Structure and Financial Details
The Capillary Technologies IPO comprises a fresh issuance of 60 lakh shares aiming to raise ₹345 crore. This is combined with an offer for sale (OFS) of 92.3 lakh shares valued at ₹532.50 crore. The company has set a price band of ₹549 to ₹577 per equity share.
According to the company's refiled Draft Red Herring Prospectus (DRHP) in June 2025, the initial plan involved a larger fresh issue of ₹430 crore and an OFS of 1.83 crore shares. The Securities and Exchange Board of India (SEBI) granted its approval for this revised draft in September 2025.
The book-running lead managers for this issue are JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Limited. MUFG Intime India Pvt. Ltd. is acting as the registrar.
Allotment, Listing, and Use of Proceeds
The basis of allotment for the Capillary Technologies IPO is expected to be finalized on Wednesday, November 19. Successful applicants will likely receive their shares on Thursday, November 20, with refunds for unsuccessful bidders being processed on the same day. The company is scheduled to list its equity shares on both the BSE and NSE on Friday, November 21.
The net proceeds from the fresh issue are earmarked for several strategic initiatives. These include covering cloud infrastructure expenses, investing in research and development for its products and platform, purchasing essential computer systems, and supporting inorganic growth through potential acquisitions. The remaining funds will be used for general corporate purposes.
In a separate development ahead of the public offering, Capillary Technologies secured ₹394 crore from anchor investors on November 13.
Investor Allocation and Subscription Data
The IPO allocation is structured with 75% of the net offer reserved for Qualified Institutional Buyers (QIBs). Retail investors have a 10% allocation, while the remaining 15% is set aside for Non-Institutional Investors (NIIs).
The IPO lot size is set at 25 shares. For retail investors, the minimum investment for one lot at the upper price band of ₹577 amounts to ₹14,425. They can apply for a maximum of 13 lots, requiring a total investment of ₹1,87,525.
As per the Red Herring Prospectus (RHP), Capillary Technologies is a software product company delivering artificial intelligence (AI)-driven, cloud-native SaaS solutions to enterprise clients globally.
Market Sentiment and Analyst Recommendations
Investor sentiment appears cautious. The company's grey market premium (GMP) stood at zero on November 14, suggesting a potential listing at or near the issue price.
The subscription data reflects this muted response. By the end of Day 2, the IPO was subscribed just 52% overall. The retail portion saw better traction at 1.09 times, while the NII portion was booked 56%. The QIB portion received only 31% bids, though the employee portion was subscribed 1.96 times.
Analysts are divided on the offering. SBI Securities has recommended an 'Avoid' rating. While acknowledging Capillary's strong position in loyalty solutions and its 53% revenue CAGR over FY23-25, the brokerage finds the implied P/E multiple of 323.3x (FY25) difficult to justify.
In contrast, IDBI Capital has assigned a 'Subscribe' rating for long-term investors. They believe the company is well-placed to benefit from the growing global demand for AI-led marketing tools and loyalty platforms. IDBI's optimism stems from Capillary's AI-driven offerings, expanding customer base, and the broader digital transformation trend among enterprises.
Disclaimer: The views and recommendations are from individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
