Capillary Technologies refiles for IPO to raise Rs 430 Cr

SaaS firm Capillary Technologies has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Thursday for an upcoming initial public offering (IPO).

The IPO will comprise a fresh issue of shares worth $50 million (around Rs 430 crore) and an offer for sale (OFS) of 1.83 crore equity shares, according to the DRHP. 

Capillary Technologies International Pte. Ltd is set to offload nearly 77.6% of the total offer-for-sale (OFS), amounting to around 1.43 crore shares. 

Other sellers participating in the OFS include institutional investors Ronal Holdings, Trudy Holdings, and Filter Capital, along with individual shareholders such as Sripathi Venkata Ramana Reddy, Harminder Sahni, Adarsh Reddy, Sudhakar Reddy, Sripathi Damodar Reddy, and Manjunath Nanjaiah.

According to the filings, promoter Capillary Technologies International Pte. Ltd holds a 65.47% stake in the company. Among the other key shareholders, Ronal Holdings owns 7.53%, AVP Fund (Avataar Ventures) holds 5.51%, while Trudy Holdings and Filter Capital India have stakes of 4.49% and 3.66%, respectively.

The proceeds from the fresh issue will be directed towards cloud infrastructure and investment in product research and development. Around Rs 120 crore will be allocated towards cloud infrastructure, Rs 151.5 crore for research, design, and development of its products and platform, and Rs 10.3 crore for the purchase of computer systems.

A portion of the funds will also support growth through unspecified acquisitions and for general corporate purposes.

The loyalty management solutions provider had previously submitted its draft papers with SEBI in 2021 but decided to postpone the IPO plans due to unfavorable market conditions.

JM Financial, IIFL Capital, and Nomura Financial Advisory have been appointed as the book-running lead managers for the IPO.

The SaaS firm reported a 14% year-on-year increase in revenue from operations, reaching Rs 598 crore, up from Rs 525 crore in FY24. It also posted a net profit of Rs 13.3 crore in FY25, reversing a net loss of Rs 59.4 crore in the previous year.