Capillary Technologies Makes Market Debut with Strong Demand

SaaS firm Capillary Technologies recorded a subdued market debut on Friday, opening at Rs 560 per share on the BSE, reflecting a 3% decrease from its issue price of Rs 577. Meanwhile, the stock began slightly higher on the NSE, at Rs 571.9.

Strong IPO Subscription Numbers

Capillary’s IPO was available for subscription from November 14 to 18, offering a price range of Rs 549 to Rs 577. The public issue garnered impressive demand despite the soft debut, being subscribed nearly 53 times overall. This surge was primarily driven by robust participation from non-institutional investors at 69.8 times and qualified institutional buyers at 57.3 times. The retail segment experienced a subscription rate of 15.7 times, while the employee quota was subscribed at 6.86 times, according to exchange data.

Adjusted Issue Size and Anchor Investments

According to the company’s Red Herring Prospectus (RHP), Capillary reduced its fresh issue size to Rs 345 crore from an originally intended Rs 430 crore. Additionally, the offer-for-sale portion was trimmed to 92.2 lakh shares, decreasing from the 1.83 crore shares stated in the draft prospectus.

Prior to its market listing, the company secured Rs 3,934 crore from 21 anchor investors, which included prominent entities like SBI MF, ICICI Prudential MF, Kotak MF, Axis MF, Aditya Birla MF, and Edelweiss MF, all at the upper limit of the price band.

Company Overview and Financial Performance

Established in 2008 by Aneesh Reddy, Krishna Mehra, and Ajay Modani, Capillary delivers cloud-native loyalty, customer relationship management (CRM), and customer engagement solutions to over 390 brands across 46 countries. Notable clients include Tata Digital, Aditya Birla Fashion, and Abbott Labs.

Capillary showcased robust financial performance for FY25, with a revenue increase of 14% year-on-year, reaching Rs 598 crore. Moreover, the firm reported a net profit of Rs 14.1 crore, contrasting with a loss of Rs 68 crore recorded in FY24.

Stock Recovery After Initial Listing

Despite the discounted debut, the stock demonstrated resilience early in trading, rising to Rs 612.5 by 10:15 AM, valuing the company at Rs 4,838 crore (approximately $543 million).