Capillary Technologies Files Draft Papers With SEBI for IPO

Capillary Technologies India Ltd has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). This is the company’s second attempt at going public after withdrawing its earlier application in December 2021.

Offer Structure

The IPO consists of a fresh issue of equity shares worth ₹430 crore and an offer-for-sale (OFS) of up to 1.83 crore shares by existing shareholders. Those participating in the OFS include Capillary Technologies International Pte Ltd (1.42 crore shares), Ronal Holdings LLC (14.66 lakh), Trudy Holdings (18.33 lakh), and Filter Capital India Fund I (7.6 lakh), among others.

Utilisation of Proceeds

Out of the ₹430 crore fresh issue, ₹120 crore will be used for cloud infrastructure expenses. ₹151.54 crore is allocated to research, design, and product development. ₹10.32 crore will go towards the purchase of computer systems. A portion will also be used for potential acquisitions and general corporate purposes.

Background and Clients

Capillary, founded in 2008, offers AI-based, cloud-native Software-as-a-Service (SaaS) solutions. The company supports over 390 brands in more than 45 countries. Some of its clients include Tata Group, Aditya Birla Group, Domino’s, Shell, and IndiGo. The firm manages loyalty programmes and customer engagement platforms for enterprise clients.

Read more: SEBI Eases IPO Norms to Boost Startup Listings and Founder Incentives!

Capillary Technologies Financial Performance

In Fiscal 2025, Capillary reported an operating revenue of ₹598.26 crore, up from ₹525.10 crore in Fiscal 2024. The company recorded a net profit of ₹13.28 crore in Fiscal 2025, compared to a loss of ₹59.38 crore the previous year.

Geographical and Sectoral Revenue

North America accounted for 56.6% of revenue in FY25, rising from 20% in FY23. While retail continues to contribute.

JM Financial, IIFL Capital, and Nomura are lead managers for the issue. Shares are proposed to be listed on the NSE and BSE.

Conclusion

Capillary Technologies' second attempt at an IPO outlines a focused use of proceeds and improved financial performance. The company is now aiming for a public market entry with a broader sector mix and expanded global presence.

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