Capillary Technologies IPO subscribed 1.4x on day 3; GMP indicates a modest pop list. Should you apply?

Capillary Technologies India’s initial public offering (IPO) saw steady demand on its third and final bidding day as investors jumped in amid gray market chatter that hinted at only a modest IPO. As of 11.40 am on Tuesday, the SaaS company’s IPO had been subscribed a total of 1.40 times, receiving bids for shares of Rs 1.2 crore against the 83.83 lakh shares on offer.According to NSE data, the retail portion was subscribed 2.18 times, with investors bidding for 33 lakh shares against the 15.17 lakh shares reserved for them. Non-institutional investors were more aggressive, taking their segment to 3.05 times the 22.76 lakh available shares. Qualified institutional buyers, who often set the tone on listing day, had subscribed 31% of their quota of 45.52 lakh shares so far.

Capillary GMP indicates a mild rating

On the unofficial market, Capillary Technologies shares trade at a premium of around 5%. The latest gray market premium, updated at 10:31 am on Tuesday, was Rs 29 over the issue price of Rs 577. That leaves the estimated listing price at Rs 606 and implies an expected gain of around 5.03% per share, a muted but positive signal ahead of the debut.

Capillary IPO Details

Capillary Technologies is raising Rs 877.50 crore through a mix of new issues and an offer for sale. The new issue comprises 0.60 crore shares worth a total of Rs 345 crore, while the OFS 0.92 crore shares worth Rs 532.50 crore. The Bengaluru-based company has set a price band of Rs 549-Rs 577 per share, with a lot size of 25 shares.

The IPO closes today, with allotment scheduled for November 19 and listing on the BSE and NSE scheduled for November 21, subject to confirmation.

What the company does

Founded in 2008, Capillary Technologies provides cloud-based customer loyalty and engagement solutions for major consumer-facing brands. The package – Loyalty, Engage, Insights and Rewards – helps companies design and manage loyalty programs, study customer behavior and execute personalized, AI-driven marketing campaigns across SMS, email, mobile apps and digital channels.

The company works with more than 250 brands in more than 30 countriesh customers such as Tata, Domino’s, Puma, Shell and Jockey. Its scalable cloud infrastructure, solid enterprise customer base, and recurring revenue have helped it become a leader in loyalty and omnichannel CRM platforms.

How real estate agents view the offer

Brokers following the deal say Capillary’s fundamentals and market position stand out in India’s fast-growing SaaS landscape. Asit C Mehta Investment Intermediates has issued a ‘subscribe’ recommendation, citing the company’s ‘extensive product suite’ and ‘strong customer base’ in a fast-growing digital loyalty market. The brokerage also highlights Capillary’s diversified global presence and recurring revenue model, which it says provides both stability and scale.

Analysts note that Capillary’s integration of AI, machine learning and predictive modeling into customer engagement allows brands to sharply personalize communications, a capability that gained traction post-pandemic as companies fought to retain digital consumers. With the Indian SaaS market expected to reach $25 billion by 2030, they argue that Capillary’s enterprise-focused strategy makes the company well-positioned to meet rising demand.

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(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)