For investors, it can be quite challenging to decide if the Capillary Technologies IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the Capillary Technologies IPO. This will help you analyze the strengths, risks, and financial details of the Capillary Technologies IPO, making your investment decision better.
About Company
Incorporated in 2008, Capillary Technologies is one of the growing Indian software product companies that offers artificial intelligence (“AI”)-based cloud-native Software-as-a-Service (“SaaS”) products and solutions to large enterprise customers. The enterprise customers are the companies that can join loyalty platforms (Loyalty+, Engage+, Insights+, Rewards+, and CDP) and can earn rewards and enjoy personalized experiences.
In fact, they are one of the few companies in the loyalty management space that provide complete loyalty solutions. The company’s service portfolio consists of Loyalty management solutions, customer engagement & marketing automation, AI & Analytics, omnichannel CRM, and clients & global reach. Moreover, Capillary Technologies India Ltd has a 14% increment in revenue and a 122% increase in profit after tax (PAT) from FY 2024 to FY 2025.
Strengths
- Capillary Technologies is one of the trusted partners in the loyalty solutions.
- They are known to offer a wide range of solutions for different customer needs.
- Flexible cloud based system with seamless integration.
- Strong and long-term customer relationships with ongoing revenue.
Weaknesses
- The company generated most of its revenue from its top 10 customers. If they lose those customers or they end their contracts, then it can badly affect the revenue, cash flow, and financial results.
- The reason behind the company’s success is how well they design and improve their platforms, products and solutions in a cost-effective manner.
If the company’s product did not meet the requirements of the customers, it can badly affect the business, cash flow and financial performance.
- Over the last 3 years, the company has a low ROE of -14.6%.
- In the past, the company had faced negative cash flow from operating activities. There is no guarantee that it will not happen again.
Capillary Technologies IPO Review
| Reviewer | Recommendation |
| IPO Watch | May Apply |
| Capital Market | Neutral |
| Swastika Investmart Ltd | Avoid |
Capillary Technologies IPO Details
| IPO Open Date: | November 14, 2025 |
| IPO Close Date: | November 18, 2025 |
| Face Value: | ₹2 Per Equity Share |
| IPO Price Band: | ₹549 to ₹577 Per Share |
| Issue Size: | ₹877.50 Crores |
| Fresh Issue | ₹345 Crores |
| Offer-for-Sale | Up to ₹92,28,796 equity shares |
| Registrar | MUFG Intime India Pvt.Ltd. |
| IPO Lead Managers | JM Financial Ltd. IIFL Capital Services Ltd. Nomura Financial Advisory & Securities (India) Pvt.Ltd. |
| Basis of Allotment | November 19, 2025 |
| IPO Listing Date: | November 21, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars (in ₹ Cr) | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 |
| Total Income | 362.56 | 611.87 | 535.44 |
| EBITDA | 39.82 | 78.57 | -1.49 |
| PAT | 1.03 | 14.15 | -68.35 |
| Net Worth | 509.38 | 481.42 | 452.13 |
| Borrowings | 88.94 | 100.09 | 77.17 |
Key Performance Indicator
| KPI | Values |
| RoNW | 2.85% |
| Debt/Equity | 0.18 |
| ROCE | 2.76% |
| PAT Margin | 2.37% |
| EBITDA Margin | 13.13% |
| Price to Book Value | 8.87 |
| Market Capitalization | ₹4,576.09 Cr. |
Peer Comparison with the Company
| Name of the Company | Face Value (₹) | Basic EPS (₹) | Diluted EPS(₹) | RONW (%) | P/E Ratio | NAV(₹) |
| Capillary Technologies | 2 | 1.93 | 1.91 | 2.85% | [●] | 65.03 |
| Listed Peers | ||||||
| Salesforce, Inc. | 0.08 | 540.79 | 534.07 | 10.26% | 40.07 | 5,441.60 |
| Adobe Inc | 0.01 | 1,038.29 | 1,032.44 | 36.74% | 28.60 | 2,650.28 |
| HubSpot, Inc | 0.09 | 7.53 | 7.53 | 0.29% | NM | 3,153.16 |
| Braze, Inc. | 0.01 | (85.65) | (85.65) | (22.58)% | NA | 402.61 |
Promoters & Track Records, if any
- Aneesh Reddy Boddu, the individual Promoter, aged 41 years, is the Founder, Managing Director, and Chief Executive Officer of the Company. He holds 1,728,380 shares, representing 2.36% of the company’s pre-Offer equity share capital.
- Capillary Technologies International Pte. Ltd., one of the Promoters, holds 48,008,006 shares, representing 65.47% of the company’s pre-Offer equity share capital.
Industry Peer Group P/E ratio
In the Software & IT Services industry where Capillary Technologies operates, the price-to-earnings (P/E) ratio based on diluted EPS ranges from 28.60 to 40.07, with an average of 34.33..
Expansion
- The proceeds raised from the fresh issue will be used for the company’s cloud infrastructure costs.
- A certain fund will be utilized for the Investment in research, designing, and development of the products and platform.
- A portion of revenue will be used towards the Investment in the purchase of computer systems for the business.
- Lastly, the remaining funds will be used for the company’s general corporate purposes.
Capillary Technologies IPO – Should You Apply or Not?
Capillary Technologies holds a strong market position in loyalty and customer engagement solutions powered by artificial intelligence. Its robust product range,
scalable SaaS model, recurring revenues, and focus on innovation support long-term growth and an expanding worldwide client base. However, high competition in the local SaaS and loyalty solution providers, regulatory risks, and valuation concerns are some of the major risks.
Short-term investors can apply for the IPO for listing gain, given the positive market sentiment and healthy financial growth. Long-term or Caveat investors evaluate competition, higher valuation, and market sentiment before subscribing. As of November 12th, the GMP of the Capillary Technologies IPO is ₹0.
Please note:
Investors are advised to make their own decisions and apply entirely at risk. This article uses information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
