Capillary Technologies IPO Filing for Rs 430 Crore

Loyalty management company Capillary Technologies has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) ahead of an anticipated initial public offering (IPO) on Thursday. The IPO aims to feature a fresh equity share issuance valued at Rs 430 crore, which is around $50 million, along with an offer for sale (OFS) encompassing 1.83 crore equity shares, as detailed in the DRHP.

Earlier this month, the Bengaluru-based company obtained board approval for a proposed IPO worth Rs 2,250 crore, approximately $265 million.

Details of the Offer for Sale

Capillary Technologies International Pte. Ltd is set to offload about 77.6% of the total OFS, translating to approximately 1.43 crore shares. Participating in the OFS are other entities, including Ronal Holdings, Trudy Holdings, Filter Capital, and several individual shareholders like Sripathi Venkata Ramana Reddy, Harminder Sahni, Adarsh Reddy, Sudhakar Reddy, Sripathi Damodar Reddy, and Manjunath Nanjaiah.

Company Ownership Structure

According to the DRHP, the promoter, Capillary Technologies International Pte Ltd, possesses a 65.47% stake in the organisation. Following them are Ronal Holdings and AVP Fund (Avataar Ventures) with stakes of 7.53% and 5.51%, respectively. Additionally, Trudy Holdings and Filter Capital India hold 4.49% and 3.66%, respectively.

Stock Exchange Listings

Capillary Technologies intends to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The IPO will be overseen by JM Financial, IIFL Capital, and Nomura Financial Advisory, serving as the principal book-running lead managers.

Use of Proceeds

As outlined in the DRHP, the funds raised from the fresh equity issue will be allocated towards cloud infrastructure expenditures, research, design, development, and various general corporate purposes.

Financial Performance Highlights

In the previous fiscal year concluding in March 2025, the company demonstrated a 14% growth in revenue year-on-year, raising its earnings to Rs 598 crore from Rs 525 crore in FY24. Moreover, Capillary Technologies achieved a net profit of Rs 14.1 crore in FY25, a significant recovery from a net loss of Rs 68.3 crore in FY24.