Public Offering Gains Traction as Subscription Closes on November 18

The Initial Public Offering (IPO) of Capillary Technologies India, a prominent software solutions provider, opened for public subscription on Friday, November 14, and is set to close today, November 18. The mainboard issue includes a fresh equity issuance of 60 lakh shares worth ₹345 crore, coupled with an offer for sale (OFS) of 92.3 lakh shares valued at ₹532.50 crore.

Price Band and Regulatory Approvals

Capillary Technologies has fixed its IPO price band between ₹549 and ₹577 per share. As per the DRHP refiled in June 2025, the company had earlier proposed a ₹430-crore fresh issuance along with an OFS of 1.83 crore shares. Following revisions, SEBI granted its approval for the updated document in September 2025.

Lead Managers and Registrar

JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Pvt. Ltd. are the appointed book-running lead managers, while MUFG Intime India Pvt. Ltd. oversees registrar responsibilities for the public issue.

Allotment Timeline and Listing Date

The allotment of shares is expected to be finalized on Wednesday, November 19. Successful applicants should receive their shares on Thursday, November 20, while refunds for non-allottees will also be processed the same day. Capillary Technologies is scheduled to list on both the NSE and BSE on Friday, November 21.

Utilization of IPO Proceeds

The company intends to deploy funds from the fresh issue toward cloud infrastructure expenses, research and product development, procurement of advanced computer systems, and potential inorganic growth through unspecified acquisitions. A portion will also be allocated to general corporate needs.

Anchor Investment Boost

Ahead of the IPO launch, Capillary Technologies secured ₹394 crore from anchor investors on November 13, signaling strong institutional confidence.

Allocation Structure and Investment Requirements

Of the total net offer, 75% is reserved for qualified institutional buyers (QIBs), 10% for retail investors, and 15% for non-institutional investors (NIIs). The IPO lot size is set at 25 shares. For retail applicants, the minimum investment at the upper price band of ₹577 stands at ₹14,425. Investors can apply for up to 13 lots, amounting to an investment of ₹1,87,525.

Business Profile of Capillary Technologies

According to the RHP, Capillary Technologies operates as a global software product company, delivering artificial intelligence (AI)-powered, cloud-native SaaS solutions tailored primarily for enterprise clients across international markets.

Capillary Technologies IPO GMP Today

Grey Market Sentiment Turns Positive

Investor enthusiasm has risen, with the IPO’s grey market premium (GMP) reaching ₹44 on November 14. This implied a potential listing price of around ₹621 — a 7.63% premium over the upper issue price of ₹577. The GMP reflects the market’s readiness to pay a higher price ahead of listing.

Capillary Technologies IPO Subscription Status

Extraordinary Demand Across Investor Categories

By 3:55 pm on Day 3, the IPO was subscribed an impressive 51.82 times. The retail segment saw 12.41x subscription, NIIs subscribed 69.03x, and QIBs recorded 56.73x bids. The employee category was subscribed 5.88x. Overall, the company received bids for 43.42 crore shares against 83.79 lakh shares on offer. Subscription stood at 29% on Day 1 and increased to 52% on Day 2.

Should You Apply for the Capillary Technologies IPO?

SBI Securities: Avoid

SBI Securities acknowledged Capillary Technologies’ strong presence in loyalty and customer engagement solutions, especially in the United States. They noted the company’s recurring revenue stream, with 89% derived from subscription-based contracts, enabling stable long-term cash flows. The brokerage, however, expressed concerns over valuation, stating that the implied FY25 P/E ratio at the upper price band (323.3x) appears difficult to justify. As a result, they issued an “Avoid” recommendation.

IDBI Capital: Subscribe

In contrast, IDBI Capital offered a “Subscribe” rating for long-term investors. The brokerage highlighted Capillary’s AI-driven SaaS offerings, its expanding global customer base, and a strong market opportunity driven by increasing demand for predictive engagement solutions and digital transformation initiatives. IDBI Capital believes the company is well-positioned to benefit from sustained enterprise spending on AI-enabled loyalty and analytics platforms. Their recommendation reflects confidence in Capillary Technologies’ potential to scale in a structurally growing industry.

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Sorit Chaudhary

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