Capillary Technologies Files for Rs.850 crore IPO

Capillary Technologies has filed draft red herring prospectus (DRHP) for its proposed Rs.850 crore IPO. Capillary Technologies is a specialized AI-based SAAS solution provider. It provides its solutions across more than 30 countries currently.

In the last few years, SAAS (software as a solution) has become an economical and preferred model for providing services which also helps to scale rapidly, especially in specialized areas like artificial intelligence.

The Capillary Technologies IPO will comprise of a fresh issue of Rs.200 crore and an offer for sale (OFS) of Rs.650 crore. The fresh issue portion will be utilized for repayment of debt and also to invest in its product development as well as in strategic acquisitions.

Capillary Technologies is also planning to do a pre-IPO placement of Rs.20 crore ahead of the IPO. If successful, then the size of the IPO would be reduced accordingly. This is distinct from the anchor placement ahead of the IPO opening.

Capillary Technologies is based out of Bengaluru and is seen as one of the new age companies in technology on the cutting edge of this shift to digital strategies. The company has had the early backing of two very formidable names from the PE world viz. Warburg Pincus and Sequoia Capital. Both will not participate in the OFS.

Capillary Technologies has provides its AI based SAAS solutions to over 250 brands worldwide and its client base extends across more than 30 countries. These countries include the US, China, Saudi Arabia, UAE, Singapore, Indonesia, Malaysia and Thailand.

Capillary Technologies is a profit making company. For FY21, the company had recorded profits of Rs.16.90 crore on top line revenues of Rs.114.90 crore. The company did not see any substantial impact on its numbers as a result of the COVID pandemic or its lag effect in the current year.

The SEBI approval normally takes 2-3 months from the filing of the DRHP. The issue of Capillary Technologies is being lead managed by ICICI Securities, Kotak Mahindra Capital and Nomura Financial Advisory, who will act as the book running lead managers to the issue.

Also Read:-

Upcoming IPOs in 2021

Upcoming IPOs in December 2021