#CapillaryTechnologies #IPO #SaaS #LoyaltyManagement #AI #FintechIndia #TrudyHoldings #OfferForSale #FreshIssue #PublicIssue #TechIPO #StockMarketIndia #InvestmentNews
Chandigarh: Capillary Technologies, a leading software product company specializing in Artificial Intelligence (AI)-based cloud-native Software-as-a-Service (SaaS) products for loyalty management, has set the price band for its Initial Public Offering (IPO) at ₹549 to ₹577 per equity share.
The public issue, which aims to raise a total of ₹877.5 crore at the upper price band, will open for subscription on November 14, 2025, and close on November 18, 2025.
IPO Structure: A Mix of Fresh Issue and OFS
The total IPO size is split into two components:
- Fresh Issue (₹345 crore): This portion involves the company issuing new equity shares. These proceeds go directly to Capillary Technologies and will be utilized for business expansion.
- Offer-for-Sale (OFS) (₹532.5 crore): This component involves existing shareholders—promoter Capillary Technologies International and investor Trudy Holdings—offloading a total of 92.28 lakh shares. The funds raised from the OFS go to the selling shareholders.
Trudy Holdings Monetizes Stake at Steep Premium
Investor Trudy Holdings, which currently holds a 4.49% stake in the SaaS firm, will sell 6.88 lakh shares through the OFS. Notably, the shares are being sold at a significant premium: over 80% above its weighted average cost of acquisition per share of ₹319.33. This significant premium highlights the substantial value creation and successful monetization for the early investor.
Objectives of the Fresh Issue
The ₹345 crore raised by the company through the fresh issue is earmarked for key strategic investments to fuel future growth:
- Cloud Infrastructure: ₹143 crore will be spent on funding cloud infrastructure costs, a critical requirement for a cloud-native SaaS business.
- R&D: ₹71.6 crore is allocated for investment in research, designing, and development of its products and platform, ensuring product leadership in the AI-driven loyalty space.
- Other Expenses: ₹10.3 crore will be used for the purchase of computer systems.
- Growth: The remaining funds are designated for unidentified acquisitions and general corporate purposes, providing the company with flexibility for inorganic growth.
Financial Performance and Global Footprint
Capillary Technologies has demonstrated a significant turnaround in its financial performance, shifting from losses to profitability:
- FY25 Profitability: The company reported a consolidated profit of ₹14.1 crore for the fiscal year 2025, a dramatic reversal from a loss of ₹68.3 crore in the previous financial year.
- H1 FY26 Growth: For the first half of FY26, revenue increased by 25% to ₹359.2 crore (from ₹287.2 crore YoY). Crucially, the company maintained profitability, recording a ₹1 crore profit against a loss of ₹10.2 crore in the corresponding period last fiscal.
Capillary’s business model is globally diversified, with over 56% of its business revenue generated from North America, 24% from the Asia Pacific, and over 19% from EMEA (Europe, Middle East, and Africa). The company is positioned as one of the few global players offering end-to-end AI-based loyalty management solutions for large enterprise customers.
Investor Quota and Minimum Bids
The IPO follows the book-building process with reservations for different investor categories:
| Investor Category | Reservation |
| Qualified Institutional Buyers (QIBs) | Up to 75% |
| Non-Institutional Investors (NIIs) | Up to 15% |
| Retail Individual Investors (RIIs) | Up to 10% |
Retail investors can bid for a minimum of 25 equity shares and in multiples thereafter. Employees are also offered a discount of ₹52 per share on the final offer price for shares reserved for them (₹2 crore worth).
The book running lead managers for the IPO are JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India).
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#CapillaryTechnologies #IPO #SaaS #LoyaltyManagement #AI #FintechIndia #TrudyHoldings #OfferForSale #FreshIssue #PublicIssue #TechIPO #StockMarketIndia #InvestmentNews
Soruce: Capillary PR
