Capillary Technologies IPO Day 2 Highlights: Issue booked 52% — Check GMP, subscription and other details

Capillary Technologies India IPO was subscribed 52% on the second day of the bidding process on Monday. Here's how different quotas were booked:

QIB: 31%

NII: 56%

Retail: 1.05x

Employee: 1.93x

• Leading SaaS-based loyalty and customer engagement platform across Asia and the Middle East.
• AI-driven analytics enable brands to personalize customer experiences effectively.
• Strong global clientele including marquee brands across retail, BFSI, and hospitality.
• Scalable cloud-based infrastructure with multi-language, multi-currency capabilities.
• Experienced leadership with deep expertise in technology and enterprise solutions.

• Heavy dependence on a few large enterprise clients for major revenue share.
• Rapidly evolving technology landscape may require continuous innovation.
• Exposure to data privacy, cybersecurity, and regulatory compliance risks.
• Intense competition from global SaaS and customer engagement platforms.
• Foreign currency and geopolitical exposure from significant overseas operations.

Capillary Technologies India IPO was booked 45% so far on the second day of the bidding process on Monday. Here's how different quotas were booked:

QIB: 29%

NII: 44%

Retail: 89%

Employee: 1.77x

The company reported a net profit for the first time in FY25 ( ₹141.54 million), after significant losses in previous years.

A substantial part of the total IPO size (e.g., over 60% based on the final issue size) consists of an Offer for Sale (OFS).

The company operates in the highly competitive global SaaS (Software-as-a-Service) space, going up against global giants like Salesforce, Adobe, and HubSpot.

Based on the company's financial data and market analysis, the valuation for the Capillary Technologies IPO appears highly aggressive; hence, it is recommended to avoid this IPO.

According to the Zinnov Report, the total addressable market (TAM) for loyalty management is estimated at USD 16.6 billion in Fiscal 2024 and is expected to reach USD 26.8 billion by Fiscal 2029, reflecting a projected growth rate of 10%. All regions across the globe are expected to register a growth rate of more than 5% from 2024 to 2029, with the Asia-Pacific region projecting a significant growth rate of 18.7% during the same period.

North America holds the largest market share, followed by Europe and Asia-Pacific. Factors driving the growth of the loyalty management market include changing end-user demographics, increased expenditure on loyalty programs, rapid adoption of AI and analytics, and growing demand for online reward management solutions.

Considering the TTM Sep-25 EPS of ₹3.21 on a post-issue basis, the company is expected to list at a P/E of ~180x with a market capitalization of ₹4,576 crore. The company does not have any listed peers in India with a comparable scale of operations or financial profile in the same industry. We assign an “Avoid” rating to this IPO, as the valuations are expensive and not in favor of investors.

— Marwadi Financial Services

Some of the company’s marquee customers include Aditya Birla Fashion and Retail Limited (ABFRL), Abbott Laboratories (Singapore) Private Limited (Abbott), Tata Digital Private Limited (Tata Digital), Frontier Communications, a global technology solutions provider, a global energy and petrochemicals company, one of UAE’s diversified conglomerates, and a European bank offering financial services focused on supporting personal and business growth.

As of September 30, 2025, it had 19 Global Fortune 500 compnaies as its customers.

Capillary Technologies is a global SaaS company offering end-to-end loyalty and engagement management solutions to enterprise clients across 47 countries. With a strong presence in India, the United States, the United Kingdom, the UAE, and other Asian markets, the company serves over 410 brands as of September 2025.

Its diversified product suite—Loyalty+, Engage+, Insights+, Rewards+, and its Customer Data Platform (CDP)—enables businesses to design comprehensive loyalty programs, deliver omnichannel engagement, and drive repeat sales through advanced analytics and seamless system integration.

Capillary leverages AI and machine learning to provide personalized marketing and predictive insights through products like Engage+ and its Co-Pilot tools, enabling hyper-personalized campaigns and faster implementation for clients. Supported by scalable cloud-based infrastructure, the company is well-positioned to benefit from the global trend toward digital transformation and enhanced customer retention.

We recommend SUBSCRIBE for the long term.

The company counts several global retailers and conglomerates among its customers. As of September 30, 2025, and March 31 of 2025, 2024, and 2023, it served 110, 98, 111, and 112 customers, and 413, 393, 398, and 339 brands, respectively. Its customers and associated brands span a wide range of verticals, including retail, consumer packaged goods (CPG), healthcare, apparel, departmental stores, luxury and lifestyle, travel, automotive and hospitality, and energy retail.

Over the years, the company has diversified the industry verticals it serves. In the last three fiscal years, it has added customers in energy retail, CPG, healthcare, BFSI, and telecommunications.

JM Financial Limited, IIFL Capital Services Limited, Nomura Financial Advisory and Securities (India) Private Limited are the book-running lead managers to the IPO.

Capillary Technologies is a leading global SaaS provider in loyalty management and customer engagement, serving 250+ enterprise clients across retail, fashion, QSR, telecom, and consumer brands. Its AI-driven, cloud-native, and API-first platform enables omnichannel personalization, real-time customer insights, and large-scale loyalty orchestration, strengthening client stickiness. Deep industry expertise, long-term contracts, and high switching costs reinforce recurring revenue visibility in fast-growing digital consumer engagement markets.

• Funding cloud infrastructure cost
• Investment in research, designing and development of products and platform
• Investment in purchase of computer systems for business
• Funding inorganic growth through unidentified acquisitions and general corporate purposes

Capillary Technologies’ IPO is coming at a time when digital transformation and AI-driven customer engagement spending are accelerating across consumer brands, BFSI, and retail globally. Capillary holds a strong position in loyalty management and customer data platforms, with a sticky enterprise client base and long-term SaaS contracts contributing to predictable recurring revenues.

Backed by marquee investors and an expanding overseas revenue mix (notably in the U.S. market), the company has demonstrated improving operating leverage, reflected in declining losses and better unit economics. Key factors to monitor include customer concentration risk, continued investments in product innovation, and execution in new geographies.

However, the company’s proven technology stack, scalable SaaS model, and improving profitability outlook make it a compelling long-term play in the enterprise CX automation space. At the upper band of INR 577, the issue is valued at a Price-to-Sales ratio of 7.48x. We are recommending a “Neutral” rating for this issue.

The IPO of SaaS provider Capillary Technologies India was subscribed 28% on its opening day on Friday. According to NSE data, the issue received 23,67,900 bids against the 83,83,430 shares on offer. Investor response was mixed across categories: the QIB portion was subscribed 29%, NIIs 28%, and the retail quota 26%.

Capillary Technologies’ IPO is currently showing a GMP of ₹23, as of November 17, 2025. Based on the upper end the price band at ₹577, the IPO’s estimated listing price is around ₹600 (issue price + GMP). This translates to an expected listing gain of approximately 3.99% per share.