Capillary Technologies IPO opens November 14: Price band, GMP, and should you subscribe?

The ₹877.5-crore initial public offering (IPO) of Capillary Technologies India, a Bengaluru-based software-as-a-service (SaaS) company, will open for subscription on Friday, November 14, and remain open for all investors till November 18.

The company will offer its shares in a price band of ₹549-₹577 apiece, with a lot size of 25 shares per application.

At the upper end of the price band, Capillary Technologies is valued at an FY25 P/E multiple of 323.3x on a post-issue basis, a valuation that SBI Securities described as expensive, recommending investors to avoid the issue.

The company aims to raise ₹345 crore through a fresh issue, while promoter Capillary Technologies International and investor Trudy Holdings will sell over 92.28 lakh shares worth ₹532.5 crore through an offer-for-sale (OFS).

Capillary Tech IPO: Anchor book

Ahead of the issue launch, Capillary Technologies raised ₹393.98 crores from anchor investors.

The company informed the bourses that it allocated 68,28,001 equity shares at Rs 577 per share on Thursday, November 14, to anchor investors.

Some of the marquee institutions that participated in the anchor includes SBI, ICICI Prudential, Kotak, Axis, Aditya Birla, Mirae, Amundi, HSBC, Valuequest, Matthews, Edelweiss, amongst many others.

Capillary Technologies, which offers AI-based, cloud-native SaaS products and solutions, has trimmed its IPO size from what was initially proposed.

As per the DRHP refiled in June 2025, the company had earlier planned a ₹430-crore fresh issue and an OFS of 1.83 crore shares. The SEBI approved the revised draft document in September 2025.

The company plans to utilise the IPO proceeds to fund cloud infrastructure costs (₹143 crore), invest in research, design, and product development (₹71.5 crore), and purchase computer systems for business operations (₹10.3 crore). The allocation for inorganic growth initiatives has not been specified.

Currently, promoters hold 67.18% stake in Capillary Technologies India, while public shareholders own 32.82%, including Ronal Holdings (7.53%), AVP Fund (5.51%), Trudy Holdings (4.49%), Filter Capital India Fund (3.66%), and Schroders Capital (1.54%).

Promoter Capillary Technologies International is backed by Qualcomm, Peak XV Partners, and Xto10x Technologies.

Company snapshot

The company provides AI-driven loyalty and engagement solutions for enterprise clients globally. Its clientele includes Tata Digital, ABFRL, Domino's Pizza Indonesia, PT Blue Bird Tbk, Arvind Fashions, Metro Brands, Puma India, Vishal Mega Mart, and InterGlobe.

On the earnings front, Capillary Technologies reported a profit of ₹1.03 crore for the six months ended September 2025, against a loss of ₹6.8 crore in the same period last year. Revenue rose 25% year-on-year to ₹359.2 crore, from ₹287.2 crore.

JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) are the book-running lead managers for the IPO.

The company will finalise share allotment on November 19, and its shares will debut on the BSE and NSE on November 21.