Capillary Technologies IPO Garners Overwhelming Investor Response
The Initial Public Offering (IPO) of Capillary Technologies, a leading provider of AI-driven loyalty solutions, concluded its bidding period with an electrifying response from the investment community. The issue was subscribed a massive 52.98 times, indicating robust confidence in the company's future prospects and its position in the competitive SaaS landscape.
Breaking Down the Stellar Subscription Numbers
The bidding process, which ran from October 30 to November 3, witnessed an avalanche of applications. Investors placed bids for a staggering 44.39 crore equity shares against the total issue size of 84 lakh shares on offer.
The demand was particularly fierce from specific investor categories:
- Non-Institutional Investors (NIIs): This segment demonstrated the highest appetite, with its portion getting subscribed an incredible 70 times. They bid for 15.89 crore shares against an allotment of just 22.75 lakh shares.
- Qualified Institutional Buyers (QIBs): Mirroring the bullish sentiment, the QIB portion was booked 57.30 times, showcasing strong institutional faith.
- Retail Investors: The quota reserved for retail individual investors was subscribed a healthy 16 times.
- Employees: The employee segment also saw enthusiastic participation, receiving subscriptions nearly 7 times the reserved portion.
Capillary Technologies IPO: Key Issue Details and Fund Utilisation
The ₹877.50 crore public offer was a mix of a fresh issue and an offer for sale (OFS). It comprised a fresh issue of 0.60 crore shares aggregating to ₹345 crore and an OFS of 0.92 crore shares aggregating to ₹532.50 crore.
The company set the price band at ₹549 to ₹577 per share. For retail investors, the minimum investment required, based on a lot size of 25 shares, was ₹14,425. This mainboard IPO is slated to list on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), with a tentative listing date of Friday, November 21.
The proceeds from the fresh issue are earmarked for several strategic initiatives:
- Funding cloud infrastructure costs.
- Investing in research, design, and development of its products and platforms.
- Purchasing computer systems to support business operations.
- A portion is also allocated for inorganic growth through potential acquisitions and for general corporate purposes.
About Capillary Technologies and What's Next
Capillary Technologies is a software-as-a-service (SaaS) firm that leverages artificial intelligence to offer cloud-native loyalty management solutions to enterprise clients globally. The company helps brands foster deeper loyalty among their consumers and channel partners and is one of the few players offering comprehensive, end-to-end solutions in this niche.
Its impressive client roster includes major names like Tata Digital, Domino's Pizza Indonesia, Puma, and InterGlobe Aviation Limited (IndiGo). As of recent financial periods, the company has served over 100 customers and nearly 400 brands, demonstrating a significant market footprint.
The share allotment is expected to be finalized on Wednesday, November 19. The company will initiate refunds for unsuccessful applicants on Wednesday, November 20, and the shares will be credited to the demat accounts of successful allottees on the same day. JM Financial Ltd acted as the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar for the issue.
