Capillary Technologies Files for IPO Approval: A New Chapter in Growth
SaaS firm Capillary Technologies India has taken a significant step towards expansion by filing preliminary papers with the Securities and Exchange Board of India (SEBI) to seek approval for an initial public offering (IPO).
IPO Details and Structure
The proposed IPO overview features a fresh issue of shares valued at ₹430 crore. This incorporates an offer for sale (OFS) of 1.83 crore shares by existing shareholders, according to the draft red herring prospectus (DRHP) released on Wednesday.
Key Stakeholders in the OFS
The shareholders exiting via the OFS include notable entities such as Capillary Technologies International Pte Ltd, Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I.
Utilization of IPO Proceeds
The funds raised from the fresh issuance will be strategically allocated:
- ₹120 crore for cloud infrastructure costs.
- ₹151.54 crore for the research, design, and development of products and platforms.
- ₹10.32 crore for the procurement of computer systems essential for business operations.
Investment in Future Growth
Additionally, the proceeds are aimed at funding inorganic growth through undisclosed acquisitions as well as serving general corporate purposes.
Previous IPO Filing and Regulatory Interaction
In December 2021, Capillary Technologies had previously filed IPO papers with SEBI but did not receive the requisite approval at that time.
Innovative Solutions and Global Presence
Capillary Technologies India specializes in artificial intelligence (AI)-based cloud-native Software-as-a-Service (SaaS) solutions, predominantly serving enterprise customers.
Headquartered in India, the company has established a considerable global footprint, with offices in the United States, the United Kingdom, the United Arab Emirates, and various Asian nations.
Current Clientele and Reach
As of March 31, 2025, Capillary Technologies supports over 390 brands located in more than 45 countries, showcasing its extensive market reach.
Financial Performance
Examining the financial trajectory, Capillary Technologies has reported a 14% increase in revenue from operations, rising from ₹525 crore in the previous fiscal year to ₹598 crore in 2025.
Notably, the company has achieved profitability in fiscal 2025, reflecting a profit of ₹13.28 crore, in stark contrast to a loss of ₹59.38 crore in fiscal 2024.
Leadership in the IPO
The book-running lead managers for this IPO include prominent financial firms such as JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Ltd.
Market Listing Aspirations
Upon successful completion of the IPO, the equity shares are intended to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Looking Ahead
As Capillary Technologies approaches this critical phase in its evolution, the anticipated IPO marks an exciting potential for growth and innovation within the SaaS industry.
Conclusion
With a robust strategy for utilizing IPO funds and a strong financial turnaround, Capillary Technologies is poised for a transformative journey ahead. Stakeholders and investors will keenly observe its progress as it ventures into the public arena.
FAQs
1. What is the total value of Capillary Technologies’ IPO?
The IPO is valued at ₹430 crore, including a fresh issue and an offer for sale by existing shareholders.
2. How will the funds from the IPO be utilized?
The funds will be allocated for cloud infrastructure, product development, and purchasing computer systems, among other corporate purposes.
3. Who are the major shareholders selling in the offer for sale?
The key shareholders selling include Capillary Technologies International Pte Ltd, Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I.
4. What financial performance has Capillary Technologies reported recently?
For fiscal 2025, the company reported a 14% increase in revenue, turning profitable with a net profit of ₹13.28 crore.
5. When does Capillary Technologies plan to list its shares?
After the IPO process is completed, the shares will be listed on the NSE and BSE.
