Capillary Technologies IPO subscribed 28% on Day 1, GMP signals flat listing: Check key details

Capillary Technologies IPO

The initial public offering of Capillary Technologies opened for public subscription today, on November 14. The maiden issue got 28 percent on Day 1.

The IPO received bids for nearly 23.68 lakh shares, as against the offer size of 83.83 lakh shares, according to data on NSE. Retail Individual Investors (RII) have subscribed 26 percent of their reserved portion, while Non Institutional Investors (NII) booked 28 percent of the portion kept for them. Qualified Institutional Buyers (QIB) have subscribed 29 percent of their allotted quota.

Ahead of listing, the unlisted shares of the company were trading with zero grey market premium (GMP) over the IPO price, according to data on Investorgain and IPO Watch. While grey market is an unofficial platform, this indicates a possible flat listing for the IPO.

Capillary Technologies, which offers artificial intelligence-based cloud-native Software-as-a-Service (SaaS) products and solutions, has launched its IPO to raise Rs 877.5 crore through a fresh issue of Rs 345 crore shares and an offer-for sale (OFS) of 92.28 lakh shares amounting to Rs 532.5 crore by promoter Capillary Technologies International, and investor Trudy Holdings.

The price band for the IPO has been set at Rs 549-577 per share. It will remain open for public bidding between November 14 and November 18.

A day before the IPO opened for public subscription, the Bengaluru-based company announced that it has raised nearly Rs 394 crore from 21 anchor investors on November 13.

"Out of the total allocation to the anchor investors, 46.1 lakh shares (i.e. 67.52 percent) were allocated to 9 domestic mutual funds including SBI Mutual Fund, ICICI Prudential MF, Kotak Mahindra AMC, Axis MF, Aditya Birla Sun Life AMC, Mirae Asset, Edelweiss, PGIM India, and Union MF," Capillary in its filing to exchanges on Thursday said.

Other investors who took part in the anchor book were Amundi Funds, HSBC Global, ValueQuest India, Matthews India Fund, Optimix Wholesale Global, Pinebridge Global Funds, Hornbill and Innoven Capital India.

Capillary Technologies aims to spend Rs 143 crore from the fresh issue proceeds for cloud infrastructure, and Rs 71.6 crore for research, designing and development of products and platform. Another Rs 10.3 crore is set to be used to buy computer systems for business, while the remainder funds will be used for inorganic growth and general corporate purposes.

JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) are acting as the merchant bankers for handling the IPO.

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