Excelsoft Technologies IPO Witnesses Strong Investor Demand
The initial public offering of Excelsoft Technologies Ltd has generated significant market interest, with the issue being oversubscribed by 6.89 times by the conclusion of the second day of bidding on Thursday. The public offering, which is scheduled to close on Friday, has attracted substantial attention from various investor categories.
IPO Details and Subscription Breakdown
Excelsoft Technologies has established its IPO price band at ₹114-120 per share, positioning the company for a valuation of approximately ₹1,380 crore at the higher price point. The allocation structure demonstrates a balanced approach, with 50% of shares reserved for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 35% for retail investors.
The subscription data reveals interesting patterns across investor categories. While the retail portion witnessed 5.92 times subscription, non-institutional investors showed exceptional enthusiasm with their portion being booked 18.20 times. Qualified Institutional Buyers have submitted 9% bids for their allocated portion. Overall, the company received bids for 21,14,24,875 shares against 3,07,01,754 shares available at 17:00 IST.
Key Dates and Grey Market Performance
The allotment process for Excelsoft Technologies IPO shares will be finalized on Monday, November 24, with refunds scheduled for processing on Tuesday, November 25. Successful applicants will see shares credited to their demat accounts on the same day following refund processing. The much-anticipated listing on both BSE and NSE is set for Wednesday, November 26.
The current grey market premium (GMP) for Excelsoft Technologies stands at ₹14, indicating an estimated listing price of ₹134 per share – representing a potential 11.67% gain over the upper price band. Market analysts note that the GMP has shown fluctuations, reaching a high of ₹30 and a low of ₹0.00 during the last ten sessions.
Company Background and Analyst Perspectives
Excelsoft Technologies brings to the market more than twenty years of experience in providing technology-driven learning and assessment solutions. The company maintains long-term agreements with enterprise clients globally, serving prominent organizations including Pearson Education, Inc., AQA Education, Colleges of Excellence, and Ascend Learning LLC among others.
Canara Bank Securities has expressed concerns about the company's valuation, noting it trades at approximately 39 times FY25 price-to-earnings ratio and about 57 times annualized for Q1FY26. The brokerage emphasizes that these valuations significantly exceed competitor metrics and require justification through execution performance. They recommend the IPO primarily for long-term, high-risk investors seeking exposure to scalable EdTech platforms.
Swastika Investmart highlighted the company's strong financial performance, with PAT increasing by approximately 172% for FY25. However, they flagged the significant dependency on Pearson Education Group, which accounts for about 59% of revenue, creating substantial concentration risk. The brokerage maintains a neutral rating due to steep valuations, anticipating only modest listing gains.
Offer Structure and Corporate Details
The current offering comprises ₹180 crore raised through fresh equity shares, while promoter Pedanta Technologies plans to divest shares worth up to ₹320 crore via an offer-for-sale mechanism. Notably, the overall offer size has been reduced from the initially planned ₹700 crore outlined in draft documents submitted to SEBI in February. The capital markets regulator granted approval for the IPO documents in July.
Promoters currently hold a 94.60% stake in Excelsoft Technologies, with the public owning the remaining 5.4%. Anand Rathi Advisors serves as the sole book-running lead manager for the IPO, while MUFG Intime India Pvt Ltd acts as the issue registrar.
