Capillary Technologies IPO: Price, Dates, GMP, & Review | Should You Subscribe? | IPO Ji

The Indian SaaS (Software-as-a-Service) story is getting a new chapter. Capillary Technologies (India) Ltd., a Bengaluru-based leader in customer loyalty and engagement solutions, is launching its ₹877.50 crore IPO. The company, which serves global brands like Tata, PUMA, and Shell, is opening its issue for subscription on November 14, 2025.

But the key question for every investor is: Is this a good investment? The company has shown a strong financial turnaround, moving from losses to profit. However, it operates in a highly competitive market against global giants.

Here is IPO Ji's detailed analysis of the Capillary Technologies IPO, covering its financials, valuation, Grey Market Premium (GMP), and our final verdict on whether you should subscribe.

Capillary Technologies IPO: At a Glance

Here are the most important details about the IPO in a quick summary.

Capillary Technologies IPO Timeline (Tentative)

Mark your calendars! Here is the complete schedule for the Capillary Technologies IPO.

Capillary Technologies IPO Lot Size & Investment

The minimum investment for a retail investor is ₹14,425 for one lot of 25 shares. The table below shows the minimum and maximum investment amounts for different investor categories.

IPO Ji Tip: There's also an Employee Discount of ₹52 per share for eligible employees.

Capillary Technologies IPO Reservation Quota

The investor reservation quota for the Capillary Technologies IPO is as follows:

• QIB (Qualified Institutional Buyers): Not less than 75% of the Net Offer
• NII (Non-Institutional Investors/HNI): Not more than 15% of the Net Offer
• Retail Investors: Not more than 10% of the Net Offer

Note: The 10% allocation for retail investors is a key point to watch. A smaller quota can lead to high oversubscription and lower allotment chances if demand is strong.

About Capillary Technologies India Ltd.

Founded in 2008, Capillary Technologies is a major SaaS company specializing in customer loyalty and engagement. In simple terms, they provide the technology (like AI and cloud platforms) that helps big brands run their loyalty programs, understand customer behavior, and send personalized marketing messages.

• What they do: Offer a suite of products (Loyalty+, Engage+, Insights+, Rewards+) that help brands with CRM, marketing automation, and analytics.
• Global Reach: They serve over 250 brands in more than 30 countries.
• Key Clients: Their impressive client list includes names like Tata, Domino’s, Jockey, PUMA, and Shell.

The company operates on a subscription-based (SaaS) model, which typically means recurring and predictable revenue.

Financial Performance: The Turnaround Story

This is the most critical part of the analysis. After years of losses, Capillary Technologies has successfully turned profitable.

Key Financial Takeaways (from IPO Ji):

1. Strong Revenue Growth: Total income grew from ₹535.44 Cr in FY24 to ₹611.87 Cr in FY25, a 14% increase.
2. The Profit Turnaround: This is the big story. The company flipped from a loss of ₹68.35 Cr in FY24 to a profit of ₹14.15 Cr in FY25. This shows improving operational efficiency and cost management.
3. Recent Performance: For the six months ending Sep 30, 2025, the company remains profitable, though the PAT is modest at ₹1.03 Cr.

Key Performance Indicators (KPIs)

Here are the KPIs as of March 31, 2025.

Valuation Alert: A Post-Issue P/E ratio of over 2200 is extremely high. This is based on the small, recently-achieved profit. This valuation prices in massive future growth, making it a "high-risk, high-reward" bet.

Strengths vs. Risks

Every IPO has two sides. Here’s what you need to know.

Company Strengths (The Good)

• Market Leader: A leading player in the loyalty and engagement SaaS space with a strong brand.
• Marquee Clients: Long-term relationships with global brands, leading to high revenue retention.
• Scalable Model: The cloud-based SaaS model is highly scalable and can be integrated easily by clients.
• Financial Turnaround: The company has proven it can become profitable.

Key Risks (The Bad & The Ugly)

• Aggressive Valuation: The P/E ratio is exceptionally high, leaving no room for error. The company must grow its profits substantially to justify this price.
• Heavy Competition: Capillary competes with global giants like Salesforce, Adobe, and HubSpot.
• Client Concentration: A significant portion of its revenue comes from its top 10 clients. Losing even one could be a major blow.
• OFS Component: The IPO is not just a fresh issue. A large part (₹532.50 Cr) is an Offer for Sale (OFS), meaning existing shareholders (promoters) are selling their stake.
• Small Retail Quota: Only 10% is reserved for retail investors, which can make allotment very difficult.

Objects of the Issue

The company will raise ₹345.00 Crores from the Fresh Issue. These funds will be used for:

• ₹120.00 Cr: Funding cloud infrastructure costs.
• ₹151.54 Cr: Investment in R&D, product design, and platform development.
• ₹10.32 Cr: Purchase of computer systems for business.
• Balance: Inorganic growth (acquisitions) and general corporate purposes.

Grey Market Premium (GMP)

Click to check Capillary Technologies IPO GMP 

Disclaimer: This analysis is for informational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. All IPO investments are subject to market risks.