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India’s year-end IPO blitz: risks, rewards and what to watchIndia’s year-end IPO blitz: risks, rewards and what to watch
Market News - June 21, 2025

Capillary Technologies Seeks ₹430 Crore IPO Boost

Capillary Technologies Seeks ₹430 Crore IPO Boost

Capillary Technologies India has filed for an IPO that features a fresh issue of ₹430 crore and an offer to sell 1.83 crore shares, representing a significant step in its growth journey.

Summary:
Capillary Technologies India Ltd has submitted draft documents to SEBI to garner ₹430 crore through a new issue in its forthcoming IPO, along with an offer for sale (OFS) of 1.83 crore equity shares. The proceeds will be used for bolstering cloud infrastructure, investing in research and development, and pursuing strategic acquisitions. Existing investors such as Capillary Technologies International Pte Ltd, Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I are set to offload part of their stakes in the OFS.

Capillary Technologies Files DRHP for ₹430 Crore IPO; Plans to Strengthen Tech, Expand Globally
Capillary Technologies India Ltd, a leading provider of SaaS-based customer loyalty and engagement solutions, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) as part of its plan for an initial public offering (IPO). The company aims to raise approximately ₹430 crore through a new share issue, along with an offer for sale (OFS) of up to 1.83 crore equity shares from existing shareholders.
The IPO marks a significant step in the company’s mission to scale its cloud-based capabilities, deepen its R&D footprint, and explore strategic mergers and acquisitions across domestic and international markets. The fresh capital infusion is expected to fuel Capillary’s next phase of digital growth and innovation.

IPO Structure: Fresh Issue + Offer for Sale
The proposed IPO consists of:
Fresh Issue: ₹430 crore worth of new equity shares
Offer for Sale: Up to 1.83 crore shares by existing investors
The selling shareholders in the OFS include:
Capillary Technologies International Pte Ltd
Ronal Holdings LLC
Trudy Holdings
Filter Capital India Fund I
These entities, early investors in the company, are likely monetizing part of their holdings to either partially exit or rebalance their investment portfolios.

Utilization of Fresh Issue Proceeds
According to the DRHP, the company plans to deploy the ₹430 crore raised through the fresh Issue for:
Investment in Cloud Infrastructure:
Capillary plans to improve its proprietary technology framework by broadening its cloud infrastructure. This will enable better scalability, faster product deployment, and improved service reliability for its global clientele.
Research and Development (R&D):
A significant portion of the proceeds will be earmarked for R&D to upgrade existing offerings and develop new AI-driven modules, enhancing personalization, predictive analytics, and automation capabilities within its customer loyalty platform.
Strategic Acquisitions and Partnerships:
Capillary aims to pursue inorganic growth through strategic acquisitions, especially in untapped geographies and niche tech areas. These moves are expected to accelerate entry into new markets and diversify its customer base.
General Corporate Purposes:
The remaining funds will support working capital requirements, marketing initiatives, and business expansion activities.

Company Overview: Empowering Brands with Customer Loyalty Tech
Founded in 2008 by Aneesh Reddy, Capillary Technologies has evolved into a prominent player in the customer engagement and loyalty management space, serving over 250 clients across retail, FMCG, automotive, and other consumer-facing industries.
The company’s SaaS platform uses advanced technologies such as AI, machine learning, and big data analytics to help brands enhance customer retention, personalize marketing campaigns, and boost lifetime customer value.
Capillary has a significant presence across various regions, including India, Southeast Asia, and the Middle East, and has recently expanded into the U.S. and Europe through strategic acquisitions like Persuade and Brierley+Partners.

Financial Snapshot and Growth Trajectory
While the DRHP provides detailed financials, preliminary data suggests Capillary has witnessed robust top-line growth, primarily driven by:
Expansion into high-margin international markets
Increased demand for digital loyalty solutions post-COVID
Adoption of subscription-based revenue models
The company has turned EBITDA-positive in recent years and has seen improved unit economics, owing to a high retention rate among clients and the upselling of value-added services.
However, challenges remain in the form of high customer acquisition costs, currency fluctuations, and competitive pressure from both global and local SaaS rivals.

Sector Outlook: Tailwinds Favoring Digital Loyalty Platforms
The customer engagement and loyalty market is expected to grow at a CAGR of over 20% globally, buoyed by:
Rising digital adoption across retail and e-commerce
Demand for real-time, personalized engagement tools
Need for data-driven insights in customer decision-making
Capillary Technologies is well-positioned to capitalize on these trends, given its end-to-end SaaS suite, AI capabilities, and expanding international footprint.

Competitive Landscape
Capillary Technologies competes with several global and regional players, including:
Salesforce (Customer 360)
Adobe Experience Cloud
Oracle Loyalty
Punchh (acquired by PAR Tech)
Local startups such as Netcore, Zoho CRM, and MoEngage
Capillary’s differentiated edge lies in its AI-powered micro-segmentation, rapid deployment capabilities, and deep integrations with existing enterprise systems.

Conclusion: A Promising Bet in India’s SaaS Growth Story
Capillary Technologies’ IPO comes at a time when investor appetite for scalable Indian SaaS startups is high. The company’s strong fundamentals, recurring revenue base, and global ambition make it a compelling proposition for both institutional and retail investors.
While valuations and market timing will play a role in its IPO success, the strategic use of proceeds in technology and expansion could further consolidate Capillary’s position in the global loyalty tech ecosystem.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Biocon Successfully Concludes QIP, Sets Issue Price at ₹330 Per Share with 3% Discount

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India’s year-end IPO blitz: risks, rewards and what to watchIndia’s year-end IPO blitz: risks, rewards and what to watch
Market News - May 15, 2025

Virtual Galaxy Infotech IPO Soars: Over 200x Subscribed!

Virtual Galaxy Infotech IPO Soars: Over 200x Subscribed!

Virtual Galaxy Infotech’s IPO was oversubscribed 200 times, indicating strong investor interest. Allotment results and a high grey market premium suggest potential listing gains.

Summary:

Virtual Galaxy Infotech’s IPO, valued at ₹93.29 crore, witnessed tremendous interest from investors, exceeding subscriptions 200 times across retail, high-net-worth individuals (HNI), and institutional sectors. With the allotment set to be finalized today and a grey market premium (GMP) of ₹53 indicating a substantial upside, investors are on edge. The public offering included a fresh issue of 6.57 million equity shares, with the listing scheduled for May 19. The excitement about the IPO reflects a renewed confidence in the market towards technology-driven companies fueled by optimistic feelings within the SME sector.

Virtual Galaxy Infotech IPO: A Stellar Debut in Primary Markets

Virtual Galaxy Infotech, a promising digital solutions provider, has captured investors’ imaginations with its dazzling Initial Public Offering (IPO). With a subscription rate exceeding 200 times, the IPO has set a new benchmark for enthusiasm in the small and medium enterprise (SME) IPO space in 2024–25.
The ₹93.29 crore issue drew aggressive bids from retail investors, non-institutional investors (NIIs), and qualified institutional buyers (QIBs), signaling broad-based confidence in the company’s business model, growth trajectory and sectoral relevance. With the allotment results anticipated to be completed today, the IPO has become the center of attention on Dalal Street.

Investor Demand: High Interest Across All Categories

The initial public offering (IPO) involved issuing 6.57 million new equity shares at a predetermined price to support the company’s working capital needs, expand infrastructure, and upgrade technology. The offering began on May 13 and concluded on May 15, with a remarkable turnout on the last day of bidding.
– Retail Category: Subscribed over 180 times
– NII/HNI Category: Subscriptions exceeded 250 times.
– QIB Category: Subscribed around 120 times
This overwhelming demand has surprised market experts, and Virtual Galaxy Infotech has established itself as one of the most highly sought-after IPOs in the recent SME market.

Grey Market Premium Soars: A Listing Day Pop Expected

In the unlisted market, the stock has a Grey Market Premium (GMP) of ₹53 per share, suggesting a potential upside of 70–80% on the listing price if the current trend continues until the listing day on May 19, 2025. The GMP reflects that market participants expect a robust debut driven by a company’s supply and digital growth story mismatch. A GMP at this level is commonly interpreted as a sign of market sentiment, and in this instance, the outlook is strongly positive.

Company Overview: Tech-Driven Growth in a Digitally Hungry Market

Virtual Galaxy Infotech is a technology solutions provider specializing in software development, digital transformation, IT consulting, and AI-driven enterprise services. The company has established a strong presence among MSMEs and mid-sized businesses looking to embrace digitalization.
Their range of services includes:
– Cloud-based enterprise solutions
– Custom software solutions tailored to retail, banking, financial services, and insurance (BFSI) sectors.
– ERP and CRM integration specifically for SMEs
– AI and automation-enhanced business analytics
In FY23, the company achieved impressive top-line growth of over 45% of the company’s year, benefiting from expanding margins fueled by high-value digital transformation projects and strong client retention. The robust client portfolio, a healthy order book, and aspirations to diversify into AI and machine learning-based platforms were significant factors that attracted investor interest.

Utilization of IPO Proceeds

Virtual Galaxy Infotech intends to use the funds raised from the IPO for the following purposes:
– Upgrading technology and enhancing infrastructure
– Recruiting skilled professionals to aid the company
– Establishing offshore delivery centers
– Increasing working capital
– Addressing general corporate needs
These efforts aim to enhance capacity and expedite the company’s evolution into a scalable IT solutions partner for clients worldwide.

What Makes the IPO Stand Out?

Stellar Growth Metrics: The company has demonstrated steady revenue and profit growth over the last three fiscal years.
Asset-Light Model: Focusing on services, the company sustains high margins while keeping capital expenditures low.
High Entry Barriers: Its technological expertise and long-term client relationships provide a significant competitive advantage.
Digital Tailwinds: The increasing digitization of Indian businesses benefits Virtual Galaxy Infotech.
Attractive Valuation: Even with strong demand, the IPO was priced interest from retail and high-net-worth investors.

Allotment Status and Next Steps for Investors

The allocation for the IPO is expected to be completed on May 16. Applicants can check their status via the BSE India IPO Allotment page, the registrar’s portal (e.g., Bigshare Services Pvt Ltd), or notifications from their brokers.
Successful applicants will have shares credited to their demat accounts by May 18, a day before listing, while refunds for unsuccessful applicants are also likely to be processed at that time.
The strong demand for the Virtual Galaxy Infotech IPO signifies renewed optimism in India’s tech and SME sectors, particularly among retail investors. This oversubscription indicates an increasing interest in specialized technology companies and may motivate more SMEs to raise funds through primary markets. Brand storytelling and market timing are crucial to an IPO’s success.

Conclusion: A Star is Born in the SME Galaxy

Virtual Galaxy Infotech’s 200x subscription has left investors starry-eyed and market watchers stunned. The company seems poised for sustained growth with a tech-centric business model, innovative use of IPO funds, and a strong digital services pipeline.
As Infotech counts down to the allotment and listing, all eyes are on whether the stock will match or exceed its grey market expectations. Virtual Galaxy could become a blueprint for SME tech IPOs in India going forward if it does.

 

 

 

 

 

 

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Rallis India Announces 250% Dividend Amid Stable Growth Trajectory

 

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