Capillary Technologies Cuts IPO Size; Bids Open Nov 14, Lists Nov 21st

Capillary Technologies has filed its red herring prospectus with a reduced public issue: a fresh issue of up to ₹345 crore and an offer-for-sale (OFS) of up to 92.29 lakh shares. Anchor bidding is set for Nov. 13; the public bid window runs Nov. 14–18, and shares are expected to list on Nov. 21. The company plans to use IPO proceeds for cloud infrastructure, product R&D and systems, while several earlier OFS sellers scaled back plans.

Capillary Technologies IPO snapshot and timeline

Capillary Technologies’ IPO will comprise a fresh issue of up to ₹345 crore and an OFS of up to 92.29 lakh shares. According to the RHP, promoter Capillary Technologies International Pte Ltd plans to sell 85.41 lakh shares, while Trudy Holdings will offload 6.88 lakh shares via the OFS. Anchor bookbuilding is due on Nov. 13; the retail and institutional offer opens Nov. 14 and closes Nov. 18, with listing pencilled in for Nov. 21.

Notably, the size of the public offering is smaller than what Capillary proposed in its DRHP: the fresh issue was earlier proposed at up to ₹430 crore, and the OFS component was larger. Several prospective OFS sellers—including Ronal Holdings, Filter Capital India and a host of individual shareholders—have withdrawn plans to sell through the OFS, contributing to the reduced public float.

A reduced issue size can signal several dynamics without implying a single cause. In the case of Capillary, a reduced public issue size and withdrawal of the OFS intentions by parties indicate a recalibration of selling pressure and a tighter primary raise. For a smaller fresh issue, the concentration of the proceeds is on priority investments—cloud infrastructure, product R&D, and essential systems—while keeping dilution under control.

For early investors and promoters, adjusting OFS volumes can be a strategic way to handle market reception and price discovery during listing. A smaller offer can tighten allocational interests for retail and institutional bidders if demand is compelling.

Where the money goes

Capillary has disclosed a clear allocation for the fresh issue proceeds:

• ₹143 crore for cloud infrastructure — indicating continued investment in scalable operations and hosting capacity;
• ₹71.6 crore for research, design and development of products and platform capabilities;
• ₹10.3 crore to purchase computer systems;
  
• The remainder is earmarked for possible acquisitions and general corporate purposes.

These line items bring emphasis to the fact that Capillary is finally positioned as a SaaS and customer-engaging platform provider that must have strong cloud capacity and well-invested, steady R&D funds to ensure continued pace with the demands of its clients.

The RHP financial disclosures not only highlight an improving profitability position but increased growth in revenue as well. Capillary reported a net profit of ₹1 crore in H1 FY26, a swing from a loss of ₹6.8 crore in H1 FY25. Operating revenue for H1 FY26 rose 25% to ₹359.2 crore, up from ₹287.2 crore a year earlier. For the full FY25, Capillary posted a net profit of ₹13.3 crore versus a loss of ₹59.4 crore in the prior year, while operating revenue grew 14% to ₹598.3 crore from ₹525.1 crore in FY24.

Those numbers frame the IPO as a financing step taken from a position of improving fundamentals—revenue growth and a move back to profitability—which the company can highlight during investor presentations.

Product and market context

Founded in 2008 by Aneesh Reddy, Capillary Technologies focuses on loyalty management and customer engagement platforms, aiming to help brands retain customers and drive repeat sales through AI-powered CRM capabilities. The IPO proceeds target the infrastructure and product investments necessary to support existing clients and to scale solutions that require high availability, analytics and personalization at scale.

From a use-case perspective, the allocations to cloud and R&D are consistent with the demands of enterprise SaaS: higher throughput for data processing, more rigorous security and compliance, and ongoing feature work to support vertical-specific customer engagement flows.

What investors should watch

• Demand vs. supply: With a reduced public issue and fewer OFS sellers, allotment dynamics could favour investors if demand is healthy.
• Post-IPO execution: How Capillary converts its H1 gains into sustained margin improvement and revenue growth across FY26 will determine investor confidence.
• Use of proceeds: Visible progress on cloud projects and R&D milestones will be critical to validate the IPO’s stated objectives.
• Acquisition strategy: The RHP flags potential acquisitions; markets will look for clarity on targets and integration plans post-listing.

Capillary’s trimmed IPO and focused use of proceeds signal a pragmatic approach: raise capital to shore up cloud capacity and product development while limiting dilution and managing OFS supply.The firm arrives in the public market with improving financials and a growth story rooted in enterprise SaaS — but execution on cloud investments, product roadmaps and any acquisition play will shape how investors judge its long-term potential.