Capillary Technologies IPO opens Nov 14: Analysts say 'Avoid'; here's why

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Capillary Technologies IPO: Capillary Technologies, a software-as-a-service (SaaS) company, is set to launch its initial public offering (IPO) on Friday, November 14, 2025. The company aims to raise ₹877.5 crore through a combination of fresh issue of 6 million equity shares aggregating to ₹345 crore and an offer for sale (OFS) of 9.2 million equity shares aggregating to ₹532.5 crore. 

 

Capillary Technologies International Pte Ltd is the promoter selling shareholder, and Trudy Holdings is the investor selling shareholder. 

 

The company has reserved not more than 75 per cent of the issue for Qualified Institutional Buyers (QIBs), not less than 15 per cent for Non-Institutional Investors (NIIs), and not less than 10 per cent for retail investors.

Capillary Technologies IPO GMP

On Thursday, November 13, 2025, the unlisted shares of Capillary Technologies were trading flat at ₹577, the upper end of the price band of ₹549-577, according to sources tracking unofficial markets.

Capillary Technologies IPO: Here's what the brokerages suggest

SBI Securities 

According to analysts at SBI Securities, Capillary Technologies is a market leader in loyalty and engagement with a significant presence in the United States. The company's business model is driven by multi-year subscription agreements, ensuring a stable & predictable revenue stream. 

 

"Besides driving organic growth, Capillary also focuses on acquisitions to integrate complementary technologies & access new customer segments. CTIL has delivered a consistent & strong topline CAGR of 53 per cent over FY23-25 & a 25 per cent Y-o-Y growth in H1-FY26. It derives 89 per cent of its revenues from subscription, which is recurring in nature," the brokerage said in a note. 

 

At the upper price band of ₹577, the company is valued at a FY25 P/E multiple of 323.3x on post-issue capital, which looks expensive. Therefore, SBI Securities recommended investors to 'Avoid' the issue.   ALSO READ | PhysicsWallah vs Emmvee vs Tenneco Clean IPO: Which one should you bet on? 

Swastika Investmart

According to Swastika Investmart, the company reported a net profit for the first time in FY25 at ₹14.15 crore, after significant lossed in previous years. Additionally, the company operates in a highly competitive global SaaS space, going up against global giants like Salesforce, Adobe and HubSpot. 

 

"Based on the company's financial data and market analysis, the valuation for the Capillary Technologies IPO appears highly aggressive hence, it is recommended to avoid this IPO," the brokerage said.

Here are the key details of the Capillary Technologies IPO:

The three-day subscription window to bid for the Capillary Technologies IPO will close on Tuesday, November 18, 2025. The allotment of shares is expected to be finalised on Wednesday, November 19, 2025. The successful allottees will receive the company's shares in their respective demat accounts on Thursday, November 20, 2025. 

 

Shares of Capillary Technologies will make their debut on the exchanges, NSE and BSE, tentatively on Friday, November 21, 2025. 

 

The company has set the price band in the range of ₹549 to ₹577, with a lot size of 25 shares. A retail investor would require a minimum investment of ₹14,425 to bid for at least one lot and in multiples thereafter.

 

MUFG Intime India is the registrar. JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) are acting as the book-running lead managers for the issue.

 

According to the RHP, the company proposes to use ₹143 crore from the net fresh issue proceeds for funding cloud infrastructure costs, and ₹71.6 crore for investment in research, designing and development of products and platform. Additionally, ₹10.3 crore will be used for investment in the purchase of computer systems for business. The remaining funds will be used for funding inorganic growth through unidentified acquisitions and general corporate purposes.