Capillary Technologies gets SEBI approval to launch IPO

Capillary Technologies, a SaaS firm has received SEBI approval for its initial public offering. The IPO will include a fresh issue of up to INR 430 Cr and an offer for sale of up to 18.3 Mn shares. The proceeds are intended for infrastructure expansion, product development, acquisitions, and general corporate purposes.

SEBI approval for Capillary IPO

Capillary Technologies has received approval from the Securities and Exchange Board of India (SEBI) to move ahead with its initial public offering. According to SEBI’s update, the regulator issued its observations on September 22, which signals clearance to proceed with the issue.

The IPO will include a fresh issue of up to INR 430 Cr and an offer for sale (OFS) of up to 18.3 Mn shares. Investors participating in the OFS include Ronal Holdings, Trudy Holdings, Filter Capital India, Sripathi Venkata Ramana Reddy, Harminder Sahni, Adarsh Reddy B, Sudhakar Reddy Katanguri, Sripathi Damodar Reddy and Manjunath Nanjaiah.

The company has outlined multiple priorities for the capital raised through the fresh issue. These include building cloud infrastructure, strengthening research and product design, acquiring computer systems, pursuing acquisitions, and funding general corporate purposes.

Capillary filed its draft red herring prospectus (DRHP) in June, shortly after receiving board approval. At that time, the company had proposed a fresh issue of INR 500 Cr along with an OFS component of INR 1,750 Cr.

Capillary is a SaaS-based loyalty management and customer engagement provider that was founded in 2008 by Aneesh Reddy. The company has more than 390 clients, such as Tata Digital, Domino, Aditya Birla Fashion and Retail, and Arvind Fashion.

Financial performance

In the case of FY25, Capillary posted a profit of INR 13.3 Cr, as compared to a loss of INR 59.4 Cr in the last fiscal year. Its operating revenue is INR 598.3 Cr, which is an improvement of 14% on the previous figure, INR 525.1 Cr, in FY24.

Capillary’s approval comes amid a year of increased IPO activity in the tech sector. Seven new-age technology companies have gone public in 2025, with Zappfresh preparing to list as the eighth. Other companies, including Pine Labs, boAt, and PhysicsWallah, have also secured SEBI clearance for their upcoming IPOs.