Capillary Technologies India files its DRHP with SEBI for ₹850 crore IPO

Sequoia Capital will make a partial exit on its while Warburg Pincus, which invested in 2016, is unlikely to sell any of its shares.

Capillary Technologies India, an artificial intelligence-based cloud-native software-as-a-solution (SaaS) products and solutions provider has filed its draft documents with the market regulator SEBI to raise to INR 850 crore through an Initial Public Offering (IPO).

According to its draft red herring prospectus (DRHP), the company will issue equity shares worth Rs 200 crore and an offer for sale of Rs 650 crore worth of equity shares by the promoter Capillary Technologies Pte Ltd (CTIPL).

A present, promoters hold a 98.06 per cent stake in the company. As per the market sources, it is understood that the company will be able to raise anywhere between INR 800-850 crore. It will use the funds for debt repayment, technology upgrade and other growth initiatives, besides some strategic investments and acquisitions and general corporate purposes.

The company posted a record profit of Rs 16.94 crore on a revenue of Rs 114.9 crore for FY21 as compared to a record profit of Rs 2.53 crore on revenue from operations of Rs 33.16 crore for the quarter ended June 2021.

The Singapore headquartered company claimed that they are the market leader in the Asia-Pacific region with a 39 per cent market share in tern=ms of loyalty management capabilities in 2020 based on the geographies in which they operate. ICICI Securities, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) are appointed as the book running lead managers to the issue.

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