Capillary Technologies will raise Rs 850 crore through the public route, consisting of Rs 200 crore in fresh shares and Rs 650 crore in offer for sale (OFS). Capillary Technologies is a digital-first company offering AI-based cloud native Software-as-a-Solution (SaaS) products.
The company offers AI-based, cloud-native software-as-a-solution products like loyalty management and customer data platforms to develop loyalty programs for consumers and channel partners.
The company offers a diversified product suite and technology platform to allow customers to run end-to-end loyalty programs and get an omnichannel, unified view to targeting their customers with personalised offers.
Capillary Technologies India Ltd. Objective
- The company proposes to use the funds for strategic acquisitions and repayment/prepayment of certain portions of debt.
- They will use the IPO proceeds for product development, investments in technology and other growth initiatives.
Why should you invest in Capillary Technologies India Ltd. IPO?
Here are our top reasons.
- The company offers cloud-based, AI-driven SaaS products and solutions. As of October 2021, they have catered to over 250 brands across thirty countries.
- The company primarily caters to large brands across apparel, conglomerate, oil and gas, food and beverage, travel, automobile, and other retailers.
- The company has expanded its services to the United States by acquiring Persuade Group in September 2021.
Competitive Peers
No listed companies in India engage in a business similar to that of Capillary Technologies. Accordingly, it is impossible to provide an industry comparison of the company.
IPO Financials
| Particulars | FY21 | FY20 |
|---|---|---|
| Revenue From Operation | 1,149.03 | 1,661.23 |
| EBITDA | 950.47 | 696.52 |
| EBITDA Margin (%) | 45.84 | 31.00 |
| Profit After Tax | 208.29 | 45.99 |
| EPS | 3.54 | 0.04 |
| ROE | NA | NA |
Know before investing
Strengths
3The group is a market leader in Consumer Engagement and Loyalty Management in Asia with Deep Domain Knowledge.
They have forged long-term relationships with several leading brands across industry verticals.
They have transitioned to a business model that will deliver profitable growth for the company.
Risks
3If the company fails to attract new customers cost-effectively, it can lose significant income.
The company earns significant revenue from limited customers, and losing one or more customers will result in revenue loss.
COVID-19 has impacted several of their customers adversely, and an outbreak of a similar pandemic will impact their future profitability.
