Excelsoft Technologies, which provides technology-based solutions for learning and assessment, plans to tap capital markets for fund raising up to Rs 700 crore via initial public offering.
The IPO will be a combination of fresh issuance of equity shares worth Rs 210 crore, and an offer-for-sale of shares worth Rs 490 crore via offer-for-sale, said the company in its draft red herring prospectus filed on February 28.
Promoters Pedanta Technologies, and Dhananjaya Sudhanva will be selling shares worth Rs 340 crore, and Rs 150 crore, respectively, via offer-for-sale.
The Karnataka-based SaaS company may consider raising up to Rs 270 crore in pre-IPO round. "If the pre-IPO placement is undertaken, then the amount raised from the pre-IPO placement will be reduced from the fresh offer size and / or the offer for sale portion," Excelsoft said.
Excelsoft intends to utilise fresh issue proceeds for purchase of land and construction of a new building, and upgradation and external electrical systems of existing facility at Mysore,, Karnataka. Further, funds will also be used for upgradation of IT infrastructure, and general corporate purposes.
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The company that caters to 71 clients across 17 countries does not have comparable peers in the listed space.
On the financial front, the Excelsoft recorded net profit at Rs 12.75 crore for the fiscal 2024, declining sharply from Rs 22.4 crore in the previous year. Revenue during the same period increased moderately to Rs 198.3 crore, up from Rs 195.1 crore.
Anand Rathi Advisors is the sole book running lead manager for the issue.
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