Archive · 15 Nov 2025
Capillary Technologies IPO Opens with Mixed Investor Sentiment
Imagine a company called Capillary Technologies that makes special computer programs to help big businesses keep their customers happy and loyal.
They do this by tracking purchases, offering rewards, and sending personalized messages.
Recently, this company decided to sell small pieces of itself to the public through something called an IPO, hoping to raise money for growth.
However, on the first day of selling, not many people bought these pieces, and only a small portion was subscribed.
Analysts are concerned because the company's growth has slowed down, and much of its recent revenue comes from buying other companies, not from its own growth.
Also, the price of these pieces (shares) seems quite high compared to similar companies, especially those that have been around longer and make consistent profits.
While Capillary Technologies has a good global presence and is working to become profitable, some investors feel it's best to wait and see how the company performs before investing.
Capillary Technologies launched its ₹877.5-crore IPO on November 14, 2025, with a price band of ₹549-577 per share.
The IPO saw a low subscription of 29% on its opening day, with concerns cited regarding normalized SaaS valuations and stringent investor expectations.
Funds raised will be used for cloud infrastructure, product development, R&D, hardware, and inorganic growth.
The company's revenue growth has decelerated, and a significant portion of its recent net revenue is attributed to acquisitions.
Valuation multiples are considered high when compared to global SaaS peers, leading to a cautious outlook from some analysts who suggest skipping the IPO for now.
- Who
- Capillary Technologies, an enterprise-grade SaaS tech provider in the loyalty domain.
- What
- Launched its ₹877.5-crore IPO with a low initial subscription rate, facing investor scrutiny over SaaS valuations and profitability.
- When
- The IPO opened on November 14, 2025, and saw a subscription of 29% by the end of the first day. The IPO closes on November 18, 2025.
- Where
- Bengaluru-headquartered, with operations and clients globally, including North America, APAC, and EMEA.
- Why
- To fund cloud infrastructure, product development and R&D, computer hardware, and for inorganic growth and general corporate purposes.
Arguments for Investing
Arguments Against Investing
Market Position and Business Model
Arguments for Investing
Capillary Technologies is a global AI-led loyalty and customer engagement platform with a significant footprint, supporting over 410 enterprise brands in 47 countries. Its recurring subscription-based model and acquisition strategy, particularly in the US, show potential for growth and synergy.
Arguments Against Investing
The company's revenue growth has slowed significantly, and its reliance on inorganic growth, especially through acquisitions that contributed over 70% of net revenue in FY25, raises questions about organic sustainability and the true health of its core business.
Financial Performance and Profitability
Arguments for Investing
The company has demonstrated improvement in profitability, moving from losses to profitable operations in FY25, with improving ARR and EBITDA, indicating positive financial trajectory.
Arguments Against Investing
Profitability and cash flow are still considered unstable, with losses in PAT for FY23 and FY24, and a slight return to profit in H1 FY26. Negative operating cash flow in two of the last three fiscal years suggests that cash conversion is not yet stable.
Valuation
Arguments for Investing
The company aims to fund critical areas like cloud infrastructure, product development, and potential acquisitions, which are essential for future growth and innovation.
Arguments Against Investing
Capillary's valuation multiples, particularly EV/sales, are considered expensive when compared to global SaaS majors with longer track records of profitability and stable cash flows. The risk-reward ratio is deemed unfavorable by some analysts.
- Company Name
- Capillary Technologies
- IPO Issue Size
- ₹877.5 crore
- Fresh Issue
- ₹345 crore
- Offer For Sale (OFS)
- ₹532.5 crore
- Price Band
- ₹549 – ₹577 per share
- IPO Opening Date
- November 14, 2025
- IPO Closing Date
- November 18, 2025
- Subscription (Day 1)
- 29%
Sources
Capillary Technologies IPO opens today at ₹549-577, market lot 25 shares
Capillary Technologies IPO day 1: GMP, subscription status, review, other key details. Should you apply?
Capillary Technologies IPO: Issue receives tepid response from investors on Day 01, subscribed 0.29 times