Capillary Technologies IPO Hits 38% on Day 2: Momentum Builds but Caution Still Prevails

Author: Aditya Pareek | EQMint | Market News

The Capillary Technologies India Ltd IPO entered its second day on a cautiously optimistic note, with subscription reaching around 38% by mid-day. While the response has picked up from Day 1, the issue is yet to see the kind of overwhelming demand that typically signals a blockbuster listing. Investors watching the market dynamics closely are now weighing whether this IPO offers a strong short-term opportunity or a more measured long-term play.

Steady Subscription Growth, But Still Moderate

The public issue, which opened for bidding on November 14 and closes on November 18, started with a moderate subscription on Day 1. By the end of the first day, the IPO had received around 28% bids against the total shares on offer. Entering Day 2, the pace improved, pushing subscription to roughly 38% by mid-session.

Retail investors (RII) have shown relatively stronger enthusiasm with their portion trending upward, while non-institutional investors (NII) and qualified institutional buyers (QIB) are moving at a slower but steady pace. This pattern is not uncommon in IPOs where large institutional allocations often come closer to the final bidding day. Nevertheless, the numbers so far reflect interest, but not frenzy.

GMP Suggests Mild Listing Gains

In the unofficial grey market, the Capillary Technologies IPO is commanding a premium of around ₹20–₹25 per share, translating to a potential listing gain of 4–5% over the upper price band of ₹577. While this does indicate positive sentiment, the GMP is far from the levels seen in high-demand tech IPOs. Earlier, the premium was reported to be higher, but it has now settled into a more realistic range.

For investors seeking immediate listing gains, the current GMP suggests that expectations should be kept modest. The premium is positive enough to show confidence but not large enough to promise a strong debut.

What Capillary Technologies Does

Capillary Technologies is a Bengaluru-based SaaS (Software-as-a-Service) company with global operations. The company provides AI-driven cloud-native solutions for loyalty management, customer engagement, data analytics and omnichannel customer communication. Over the years, it has built a diversified portfolio of enterprise clients, including major retail, FMCG, and luxury brands.

With operations spanning nearly 50 countries—from the United States and the United Kingdom to the Middle East and Southeast Asia—the company has a well-established international footprint. Its business model aligns with growing global demand for personalised marketing, digital customer engagement, and data-driven decision making.

Financial Snapshot and Valuation

Capillary Technologies recorded revenues of nearly ₹600 crore for FY25, with continued momentum seen in the first half of FY26. While the revenue base is strong for a SaaS player, consistent profitability has been a challenge—something common among rapidly scaling tech firms.

At the upper end of the price band, the IPO values the company at a price-to-sales ratio of around 7.5 times, which places it in the premium zone compared to several listed SaaS peers. The elevated valuation indicates that investors are paying for future possibilities more than present profits, making sustained execution and expansion critical.

Where the IPO Funds Will Be Used

The IPO includes both a fresh issue and an offer for sale. Proceeds from the fresh issue will be channelled into:

Strengthening cloud infrastructure and data platforms

Accelerating research and development to enhance AI-driven products

Purchasing computing equipment to support scaling

Potential acquisitions to expand capabilities and market reach

General corporate purposes

These focus areas point to a company still in investment mode, aiming to deepen technology strengths and expand global presence.

Risks That Investors Should Consider

Despite its strong positioning, the company faces several risks:

High valuation: Leaves limited room for short-term upside.

Dependence on global markets: Exposure to foreign economic cycles and regulatory environments.

Execution challenges: Scaling operations smoothly across geographies always carries operational risks.

Moderate subscription so far: Indicates stable but not aggressive demand, which may influence listing behaviour.

Should Investors Apply?

The Capillary Technologies IPO is drawing a steady response, but not the kind of explosive subscription that guarantees high listing gains. With GMP pointing to a small premium, short-term investors may find limited upside unless demand spikes sharply on the final day.

However, for long-term investors with an interest in SaaS, AI-driven customer engagement, and global tech businesses, Capillary presents a compelling growth story. Its diversified client base, global operations, and focus on digital loyalty solutions align with major future market trends.

Ultimately, the decision depends on investment horizon and risk appetite:

Short-term investors: Should temper expectations.

Long-term believers in SaaS and digital engagement: May find the IPO worth considering.

As the IPO heads into its final days, all eyes will be on subscription momentum and last-minute institutional participation, both of which could shape the final outlook.

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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.