Capillary Technologies India's IPO entered its second day today, November 17, 2025, after a tepid initial response. The ₹877.5 crore IPO aims to raise funds through a fresh issue of ₹345 crore and an offer for sale (OFS) of 92,28,796 shares. The IPO will remain open for subscription until November 18, 2025.
Subscription Status
On the first day, the IPO was subscribed 0.28 times. According to BSE data, the retail portion was subscribed 26%, while the Non-Institutional Investors (NII) category saw 28% subscription. Qualified Institutional Buyers (QIBs) subscribed 29% of their allocated shares. The employee segment was subscribed 0.87 times.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for Capillary Technologies has declined since its launch. Today, November 17, 2025, the GMP is around ₹23, a decrease from ₹50 earlier. This GMP indicates that the unlisted shares are trading at ₹600 in the grey market, suggesting a listing gain of approximately 4% over the upper price band of ₹577. The grey market premium suggests that the stock may list in the range of Rs 601–602, assuming market sentiment remains steady.
Key IPO Details
- Price Band: ₹549 to ₹577 per share.
- Lot Size: 25 shares, requiring a minimum investment of ₹14,425 for retail investors.
- Issue Size: ₹877.5 crore.
- Fresh Issue: ₹345 crore.
- Offer for Sale (OFS): ₹532.5 crore.
- Listing: The shares are tentatively scheduled to be listed on the BSE and NSE on November 21, 2025.
- Allotment Date: The share allotment status is expected to be finalised on November 19, 2025.
Objects of the Issue
The company intends to utilize the net proceeds from the IPO for funding cloud infrastructure, investing in research, design and development, purchasing computers, funding inorganic growth through acquisitions, and for general corporate purposes.
Financial Performance
In Q2FY26, Capillary Technologies reported a net profit of ₹1.03 crore, compared to a loss of ₹10.28 crore in Q2FY25. The company's revenue from operations increased by 25% year-on-year to ₹359.22 crore in Q2FY26. For the six months ended September 2025, Capillary Technologies reported consolidated revenue of ₹359.21 crore, compared to ₹598.25 crore in FY25.
Brokerage Recommendations and Considerations
IDBI Capital has assigned a "Subscribe" rating to the IPO for long-term investors, noting Capillary Technologies' position to benefit from the rising demand for AI-led marketing and loyalty programs.
However, potential investors should note that the IPO is priced aggressively relative to earnings, demanding rapid and consistent growth to justify its valuation. Profitability is nascent, with thin margins and potential volatility in global operations. A significant portion of revenue comes from a few large clients, creating dependency risk.
How to Apply
To apply for the Capillary Technologies IPO, you can use the ASBA (Applications Supported by Blocked Amount) process through your bank's net banking facility. Log in to your internet banking account, go to the 'Investments' or 'IPO Application' section, select 'Capillary Technologies India Ltd IPO', enter the number of lots and your bid price, and confirm the application.
Final Verdict: Apply or Avoid?
Capillary Technologies IPO presents an appealing narrative with its AI-driven SaaS platform and global presence. However, the company's high valuation and execution challenges warrant a cautious approach. Investors seeking exposure to India's emerging SaaS ecosystem may consider a small, calculated allocation. Conservative investors might prefer to observe the company's post-listing performance before committing capital.
