Capillary Technologies India Limited Makes Subdued Debut with 2.95% Decline, Lists at ₹560.00 Against Exceptional Subscription

Capillary Technologies India Limited, a leading software-as-a-service company specializing in customer loyalty and engagement solutions through comprehensive suite of AI-powered products including Loyalty+, Insights+, Engage+, and Rewards+ serving over 250 brands across 30 countries including Tata, Domino's, Jockey, PUMA, and Shell with scalable cloud-based infrastructure and omnichannel CRM capabilities, made a subdued debut on BSE and NSE on November 21, 2025. After closing its IPO bidding between November 14-18, 2025, the company commenced trading with a decline of 2.95% opening at ₹560.00 and touched ₹620.90 (up 7.61%).

Capillary Technologies India Limited Listing Details

Capillary Technologies launched its IPO at ₹577 per share with minimum investment of 25 shares costing ₹14,425. The IPO received exceptional response with subscription of 52.98 times - retail at 15.85 times, QIB at 57.30 times, NII at 69.85 times (sNII at 38.72 times and bNII at 85.42 times), and employee reservation at 6.88 times, indicating strong institutional confidence in SaaS business model despite recent profitability turnaround.

First-Day Trading Performance

Listing Price: Capillary Technologies opened at ₹560.00 representing decline of 2.95% from issue price of ₹577.00, touched high of ₹620.90 (up 7.61%) and low of ₹560.00 (down 2.95%), with VWAP at ₹588.40, reflecting volatile trading pattern with recovery from opening decline demonstrating investor interest in customer engagement platform despite initial cautious sentiment.

Growth Drivers and Challenges

Growth Drivers:

Market Leadership Position: Leading Indian SaaS company in loyalty solutions serving over 250 brands across 30 countries with comprehensive product suite covering loyalty management, customer engagement, marketing automation, AI analytics, and omnichannel CRM capabilities.

Profitability Turnaround: Company turned profitable in FY25 with PAT of ₹14.15 crore after losses of ₹68.35 crore in FY24, revenue growth of 14%, improving EBITDA margin of 13.13%, demonstrating successful business model transition and operational efficiency gains.

Scalable SaaS Model: Subscription-based revenue model with high net revenue retention, diverse long-term customer relationships, cloud-based infrastructure with seamless integration capabilities, multiple loyalty programs for retailers, conglomerates, and energy retail sectors providing recurring revenue streams.

Challenges:

Marginal Profitability: Despite turnaround, PAT margin of just 2.37% and ROCE of 2.76% remain thin, limited profit cushion vulnerable to market conditions, continued investment requirements in research and development potentially impacting near-term profitability.

Aggressive Valuation: Post-issue P/E of 2214.95x representing extremely elevated valuation multiple, price-to-book of 8.87x, subdued listing with 2.95% decline despite exceptional subscription indicating valuation concerns and cautious market assessment of growth sustainability.

Promoter Dilution: Significant promoter stake reduction from 67.95% to 52.05%, high proportion of offer for sale at ₹532.50 crore versus fresh issue of ₹345.20 crore, debt-to-equity of 0.18, competitive SaaS market requiring continuous innovation and technology investments.

Utilisation of IPO Proceeds

Cloud Infrastructure: ₹143.00 crore for funding cloud infrastructure costs supporting platform scalability, performance optimization, and expanding customer base across geographies while maintaining service quality and uptime standards.

Research and Development: ₹71.58 crore for investment in research, designing, and development of products and platform enhancing AI capabilities, machine learning algorithms, and feature enhancements to maintain competitive edge in loyalty solutions market.

Technology Investment: ₹10.34 crore for purchase of computer systems supporting business operations, ₹97.99 crore for inorganic growth through unidentified acquisitions and general corporate purposes enabling strategic expansion and operational flexibility.

Financial Performance

Revenue: ₹611.87 crore for FY25, growth of 14% from ₹535.44 crore in FY24, reflecting expanding customer base and deeper penetration across existing clients through comprehensive loyalty and engagement solutions.

Net Profit: ₹14.15 crore in FY25, remarkable turnaround from loss of ₹68.35 crore in FY24, representing 121% improvement demonstrating successful transition to profitability through operational efficiency and revenue scaling benefits.

Financial Metrics: ROCE of 2.76%, RoNW of 2.85%, debt-to-equity of 0.18, PAT margin of 2.37%, EBITDA margin of 13.13%, price-to-book of 8.87x, post-issue EPS of ₹0.26, P/E of 2214.95x, net worth of ₹481.42 crore, total borrowings of ₹100.09 crore, and market capitalisation of ₹4,853.88 crore.