The ₹877.50 crore initial public offering (IPO) of Capillary Technologies India commenced today for public subscription, with a price band set between ₹549 and ₹577 per share. Investors are required to bid for a minimum of 25 equity shares, with additional bids allowed in multiples of 25. The offer will close on Tuesday, November 18.
Of the total offer, up to 75% is allocated for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. The IPO includes a fresh issue worth ₹345 crore and an offer-for-sale of 92,28,796 shares.
As part of the IPO process, Capillary Technologies secured ₹393.98 crore from anchor investors by establishing a share allocation of 68,28,001 shares at ₹577 each. Among the notable institutional participants in this allocation are SBI, ICICI Prudential, Kotak, Axis, Aditya Birla, Mirae, Amundi, HSBC, Valuequest, Matthews, and Edelweiss.
Proceeds from the fresh issue will be directed toward funding cloud infrastructure, investing in research and product development, and acquiring computer systems to bolster business operations. Additionally, some funds will be set aside for potential acquisitions and general corporate purposes.
JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Limited are serving as the book-running lead managers for the offering, while MUFG Intime India Private Limited will act as the registrar.
Capillary Technologies is a software product company specializing in artificial intelligence (AI)-based, cloud-native Software-as-a-Service (SaaS) products. The company caters primarily to enterprise customers globally, aiming to enhance loyalty among consumers and channel partners. By September 2025, it positioned itself as a global leader in loyalty and engagement management, based on benchmarks against its peers.
The company’s comprehensive product suite includes advanced loyalty management (Loyalty+), connected engagement (Engage+), predictive analytics (Insights+), rewards management (Rewards+), and customer data platforms (CDP). These offerings enable clients to run comprehensive loyalty programs and achieve unified, cross-channel strategies for delivering real-time, personalized experiences. As of September 30, 2025, Capillary Technologies supported over 410 brands across 47 countries.
For the six months ending September 30, 2025, the company reported consolidated revenue from operations of ₹359.218 crore, compared to ₹287.177 crore during the same period in 2024. For the full fiscal year 2025, consolidated revenue reached ₹598.259 crore, up from ₹525.10 crore in FY24, and ₹255.372 crore in FY23.
In broker assessments, SBI Securities noted that Capillary Technologies is a market leader in loyalty and engagement, particularly within the U.S. The firm cites a business model based on multi-year subscription agreements that provide a stable revenue stream. While Capillary aims for organic growth, it also focuses on acquisitions to integrate complementary technologies and reach new customer segments. The company achieved a 53% compounded annual growth rate (CAGR) in revenue from FY23 to FY25, with a 25% year-over-year growth in the first half of FY26. Approximately 89% of its revenue is from recurring subscriptions. However, at the upper price band of ₹577, the company is valued at a P/E multiple of 323.3x for FY25 post-issue capital, which some analysts find expensive. Thus, they recommend that investors avoid the issue.
Published on November 14, 2025.
