Capillary Technologies files papers to float Rs 850-crore IPO

Capillary Technologies (India), a provider of AI-based Cloud-native software as a service (Saas) solutions, has filed papers with market regulator Securities and Exchange Board of India (SEBI) to raise Rs 850 crore through an initial public offer (IPO). The Bengaluru-based company is backed by investors such as Warburg Pincus and Sequoia Capital.

Capillary Tech's IPO comprises fresh issuance of equity shares worth Rs 200 crore, and an offer for sale (OFS) of shares worth Rs 650 crore by promoter Capillary Technologies International, according to the draft red herring prospectus (DRHP).

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Capillary Technologies may consider a pre-IPO placement aggregating up to Rs 20 crore, which, if completed, will lead to reduction in the size of fresh issuance.

Capillary Technologies plans to utilise the proceeds from the IPO towards debt repayment, investment in product development and technology, other growth initiatives, strategic investments and acquisitions, and for general corporate purposes.

ICICI Securities, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) Private Limited are the book running lead managers to the issue.

Capillary Technologies India has served more than 250 brands across over 30 countries including India, the US, China, the UAE, Saudi Arabia, Singapore, Indonesia, Malaysia and Thailand, as of October 31, 2021.

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In FY21, Capillary Technologies' net profit stood at Rs 16.9 crore, and revenue from operations at Rs 114.9 crore. For the April-June period, the company's net profit was at Rs 2.5 crore and revenue from operations at Rs 33.2 crore.