Excelsoft IPO: Big potential, risks loom large; what investors should know

Excelsoft Technologies IPO: Excelsoft Technologies, a global vertical SaaS company, is set to launch its maiden public issue on Wednesday, November 19, 2025. The public issue comprises a fresh issue of 15 million shares aggregating to ₹180 crore, and an offer for sale (OFS) with investors divesting up to 26.7 million shares worth ₹320 crore.

 

Excelsoft Technologies IPO will be offered at a price band of ₹114 to ₹120 per share. The minimum application size has been set at 125 shares per lot. The issue will remain open for subscription till Tuesday, November 11, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Wednesday, November 26, 2025.

 

 

MUFG Intime India is the registrar for the issue. Anand Rathi Investment Banking is the sole book-running lead manager. 

 

According to the red herring prospectus (RHP), the company intends to use ₹71.9 crore from the net fresh issue proceeds to acquire land and construct a new building at its Mysore property, ₹39.5 crore for upgrades, including external electrical systems at the existing Mysore facility, and ₹54.6 crore to enhance its IT infrastructure. The remaining proceeds will fund general corporate purposes.  Check Tenneco Clean Air IPO Allotment Status

Here are the key risks associated with investing in Excelsoft Technologies:

Customer concentration: During FY23/FY24/FY25/Q1FY26, the company generated 41.9 per cent/46.5 per cent/58.8 per cent/59.2 per cent of its revenue from its largest client, Pearson Education Group. Any contract termination or reduction in business from Pearson Education Group could adversely affect the company’s overall performance.

 

Evolving industry trends: According to the RHP, the company operates in a rapidly evolving IT and SaaS landscape, where technological shifts and changing client needs can quickly render services outdated. If the company fails to adapt, innovate, or upgrade its offerings in a timely and cost-effective manner, its business and financial performance may be adversely affected.

 

Industry concentration: During Q1FY26, FY25, FY24, and FY23, Excelsoft earned 78.03 per cent, 78.00 per cent, 67.07 per cent, and 70.03 per cent, respectively, of its revenue from the publishing and certification and testing agency sectors. The company’s growth is closely tied to these industries, and any downturn, reduced outsourcing, or regulatory changes could materially affect its business.

 

Agreement validity risk: As per the RHP, most of the company's agreements, including those with clients and customers, have been executed on unstamped or unregistered white papers. This may raise questions about their validity or enforceability, potentially making them inadmissible in legal proceedings or requiring penalties to enforce, which could adversely affect the company's operations.

 

Forex fluctuations: The company conducts business in multiple currencies and serves significant international customers, exposing it to currency exchange risks.

 

Customer retention: Excelsoft’s performance depends on its reputation, service quality, and market perception. Failure to retain or attract clients could adversely impact its business results, the company said in its DRHP.

Key competitive strengths of Excelsoft Technologies:

Product and solution expertise: Excelsoft has deep expertise in product engineering, development, and implementation across assessments, digital learning, and information management systems. Its solutions cover the full lifecycle of learning and assessment, offering versatile, feature-rich products that address diverse organisational needs. The company has years of experience and a strong understanding of customer requirements. 

 

Global customer relationships: According to the RHP, the company has established long-term relationships with a diverse global clientele, spanning countries such as the USA, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE, and Canada. Many of these customers have maintained extended associations, reflecting trust and confidence in the company’s products and services.

 

Flexibility with technologies: The company’s ability to work with diverse technologies allows it to select the most suitable tools, platforms, or frameworks for each solution. This flexibility enables optimised performance, cost-efficiency, and scalability, supporting growth in customer base, product lines, and transaction volumes. It also allows the company to adapt to evolving business models and industry trends, delivering faster responses, improved customer experiences, and innovative products.