Excelsoft Technologies IPO: A Deep Dive into the Public Offer
The Indian primary market is set to welcome a new player from the software-as-a-service (SaaS) sector. Excelsoft Technologies, a global company specializing in learning and assessment solutions, is launching its highly anticipated initial public offering (IPO) this week. This move marks a significant milestone for the company and presents a fresh opportunity for investors.
IPO Dates, Price Band, and Financial Snapshot
The Excelsoft Technologies IPO will open for subscription on Wednesday, November 19, and will close on Friday, November 21. The company has set a price band of ₹114 to ₹120 per equity share. This is a book-build issue with a total size of ₹500 crore, which includes a fresh issue of 1.50 crore shares to raise ₹180 crore and an offer for sale (OFS) of 2.67 crore shares amounting to ₹320 crore.
Financially, the company has shown a resilient performance. Its revenue from operations has demonstrated steady growth, increasing from ₹195.1 crore in FY23 to ₹233.29 crore in FY25. Profits have been more volatile, with a dip in FY24 to ₹12.75 crore, but a strong rebound to ₹34.69 crore in FY25, indicating a positive recovery trajectory.
GMP, Lot Size, and Investor Allocation
A key indicator of market sentiment, the grey market premium (GMP) for the Excelsoft Technologies IPO was ₹16 as of November 18. This suggests that the shares could list at a premium of approximately 13% over the issue price, generating significant interest among retail and institutional investors.
For retail participants, the lot size is set at 125 shares. With the upper price band of ₹120, the minimum investment required is ₹15,000 for one lot. Retail investors can apply for up to 13 lots, which would amount to ₹1,95,000. The IPO allocation is strategically divided, with 50% reserved for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors (NIIs).
Allotment, Listing, and Objectives of the Issue
Investors who apply for the IPO can expect the share allotment to be finalized on Monday, November 24. Successful allottees will receive the shares in their demat accounts on Tuesday, November 25, and any refunds for unsuccessful applications will be processed on the same day. The much-anticipated listing on both the BSE and NSE is scheduled for Wednesday, November 26.
The capital raised from the fresh issue will be utilized for several strategic objectives. The company plans to use the net proceeds for the purchase of land and construction of a new building, the upgradation of electrical systems in Mysore, enhancement of its IT infrastructure, and for general corporate purposes. This points towards a focus on expansion and operational strengthening.
As a global vertical SaaS player with a presence across 19 countries, Excelsoft Technologies' public offering is a notable event for the Indian tech and education sectors. Investors are advised to carefully review the company's Red Herring Prospectus (RHP) and consult with certified financial experts before making any investment decisions, as market conditions are subject to change.
