Weak Market Debut for Capillary Technologies IPO
Capillary Technologies India made a disappointing entry into the Indian stock market on Friday, November 21, 2025, with its shares listing below the issue price on both major exchanges. The cloud-native SaaS company witnessed its stock open at ₹571.90 per share on the NSE, representing a 0.88% discount from its issue price of ₹577. The performance was even weaker on the BSE, where it debuted at ₹560 per share, marking a 2.95% decline from the offering price.
This weak listing came as a surprise to market observers, especially considering the optimistic signals from the grey market. The grey market premium (GMP) had stood at ₹53 per share prior to listing, suggesting a potential debut around ₹630 - which would have translated to a healthy 9.19% premium over the upper end of the issue price band.
IPO Subscription and Financial Details
Despite the tepid listing, the Capillary Technologies IPO had generated significant investor interest during the subscription period. The public offering was subscribed 52.98 times overall, demonstrating strong market appetite. The breakdown reveals even more impressive numbers: the retail portion was subscribed 15.85 times, while non-institutional investors (NIIs) poured in bids amounting to 69.85 times their allocated quota. Qualified Institutional Buyers (QIBs) showed robust interest with 57.30 times subscription, and the employee portion was booked 6.88 times.
The ₹877.70-crore IPO comprised a fresh issuance of 60 lakh shares worth ₹345 crore and an offer for sale (OFS) of 92.3 lakh shares valued at ₹532.50 crore. The company had initially proposed a different structure in its June 2025 DRHP, planning a ₹430-crore fresh issue and an OFS of 1.83 crore shares before SEBI approved the revised draft in September 2025.
Prior to the public offering, the company had already secured ₹394 crore from anchor investors on November 13, indicating institutional confidence in the company's prospects.
Business Fundamentals and Future Plans
Capillary Technologies operates as an artificial intelligence-driven, cloud-native software-as-a-service company serving enterprise clients globally. Headquartered in India, the company maintains an extensive international presence with offices in the United States, United Kingdom, United Arab Emirates, and multiple Asian countries. As of March 31, 2025, the company catered to more than 390 brands across 45 countries.
The company demonstrated strong financial improvement in Fiscal 2025, reporting a 13.93% increase in revenue from operations to ₹598.26 crore from ₹525.10 crore in the previous fiscal year. More significantly, Capillary returned to profitability, posting a net profit of ₹13.28 crore compared to a loss of ₹59.38 crore in fiscal 2024.
The net proceeds from the fresh issue are earmarked for several strategic initiatives: meeting cloud infrastructure expenses, funding research and development of products and platform, purchasing necessary computer systems, and supporting inorganic expansion through acquisitions, along with general corporate purposes.
The IPO was managed by JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Limited, with MUFG Intime India Pvt. Ltd. serving as the registrar. For retail investors, the minimum investment required was ₹14,425 for one lot of 25 shares at the upper price band.
