Excelsoft Technologies’ IPO includes a fresh issue of 1.50 crore equity shares for a total of Rs 180 crore and an offer for sale (OFS) of 2.67 crore equity shares for an amount of Rs 320 crore.Excelsoft Technologies IPO Day 1 Subscription Overview
At the end of the bidding on Day 1, the issue had been subscribed a total of 1.45 times.
Private Individual Investors (RIIs): Subscribed 1.85 times against offered shares of Rs 1.53 crore. Non-Institutional Investors (NIIs): Subscribed 2.45 times against 65.78 lakh shares on offer. Qualified Institutional Buyers (QIBs): 1% subscribed against 87.71 lakh shares offered.
Excelsoft Technologies IPO GMP today:
In the gray market, Excelsoft Tech’s shares are currently trading at a premium of Rs 14, which is roughly 11.8% higher than the issue price of Rs 120. This premium indicates that the shares could potentially trade around Rs 134.
However, investors should note that GMP is not an official indicator of how a stock may perform on its debut.
Excelsoft Technologies IPO Details
Excelsoft Technologies has launched a Rs 500 crore IPO comprising a fresh issue of 1.50 crore equity shares worth Rs 180 crore and an offer for sale (OFS) of 2.67 crore equity shares for a total of Rs 320 crore.
The price range is fixed at Rs 114-120 per share, and the lot size is 125 shares. At the higher end of the range, the IPO implies a market capitalization of around Rs 1,381 crore. The shares have a face value of Rs 10 each and are proposed to be listed on both the BSE and NSE.
The company has reserved 50% of the offered shares for QIBs, 35% for retail investors and 15% for non-institutional investors.
About the company
Excelsoft Technologies is a vertical SaaS company operating in the global learning and assessment ecosystem. Offerings include AI-powered learning tools, assessment and testing platforms, online proctoring solutions, learning experience platforms, student success tools and digital eBook products.
Key products include SARAS e-Assessments, EasyProctor, SARAS Learning Solutions, OpenPage, EnablED, CollegeSparc and LearnActiv. The company serves approximately 76 customers worldwide, including major players such as the Pearson Group, and generates a large portion of its revenue from long-term, recurring contracts.
The money from the new expenditure will be spent on expansion initiatives. This includes the capital expenditure for a new property in Mysore – for land acquisition and construction – along with upgrades to electrical systems, investments in software, hardware and network infrastructure, and general corporate purposes.
Financial performance
Excelsoft has shown strong financial momentum. Revised consolidated total income increased to Rs 233.29 crore in FY25, compared to Rs 198.30 crore in FY24 and Rs 195.10 crore in FY23. Net profit rose sharply to Rs 34.69 crore in FY25, compared to Rs 12.75 crore in FY24 and Rs 22.41 crore in FY23, indicating a significant recovery in profitability.
The company reported an EBITDA margin of 31.40% in FY25, up from 27.72% in FY24 and 34.94% in FY23. Net assets stood at Rs 371.29 crore in FY25, and return on capital employed (RoCE) stood at 16.11%.
Risk factors
Excelsoft is heavily dependent on Pearson Education Group, which accounts for approximately 59% of revenue, creating significant customer concentration risk.
Global operations expose the company to multiple regulatory and compliance regimes, while the SaaS business model can delay revenue recognition and impact cash flows in the short term. The company also operates in a space where cybersecurity and data protection are critical given the sensitive nature of education and assessment data.
Should you subscribe?
In terms of valuation, the IPO appears demanding. Based on FY25 earnings per share of Rs 3.47, the issue is valued at around 34.62 times pre-IPO earnings, which is at the higher end of the range compared to listed technology and IT services companies mentioned in the note.
Although the company operates in a specialized and growing vertical SaaS segment and has long-standing global relationships, a price-to-earnings ratio of around 35 offers little comfort to investors looking for a strong margin of safety in a stock market listing.
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“The issue appears to be aggressively priced (price/earnings of 35), leading to a neutral rating with expectations of only a small listing gain,” Swastika Investmart said.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times)
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