Capillary Technologies IPO Day 3 Highlights: Issue booked nearly 53x; GMP jumps — Should you apply?

Capillary Technologies India IPO was booked 52.95 times at the end of the third and final day of bidding as it received bids for 44,38,95,325 shares as against 83,83,430 shares on offer.

The QIB segment was subscribed 57.27 times, the NII quota 69.84 times and the retail portion received 15.82 times. The employee part received 6.88 times bids.

Operating on a subscription-led SaaS model, Capillary benefits from predictable ARR growth, strong gross margins, and high operating leverage. Its expanding global footprint in India, the Middle East, Southeast Asia, and North America, combined with increasing enterprise demand for personalized customer engagement, positions it to capture rising digital transformation budgets, unlock long-term revenue compounding, and scale efficiently with improving profitability.

Capillary Technologies provides a comprehensive suite of SaaS-based loyalty and engagement solutions designed to meet the diverse needs of enterprises across industries. Its core product offerings—Loyalty+, Engage+, Insights+, Rewards+, and CDP—collectively form a full-spectrum loyalty management ecosystem.

These platforms empower brands to design, execute, and measure end-to-end loyalty programs, gain deep insights into consumer behavior, and deliver unified, personalized experiences across touchpoints.

By combining artificial intelligence, machine learning, and data analytics, the company enables its clients to drive repeat purchases, build stronger customer relationships, and enhance long-term brand value.

Capillary has established itself as a global player in enterprise engagement and loyalty SaaS, serving over 410 brands across 47 countries. Its strong presence in both developed and emerging markets demonstrates scalability and resilience across diverse business environments.

“Considering the TTM Sep-25 EPS of ₹3.21 on a post-issue basis, the company is set to list at a P/E of approximately 180x, with a market cap 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 favourable for investors,” said Marwadi Financial Services.

Founded in India, Capillary Technologies is a global software product firm offering AI-based, cloud-native SaaS solutions that help enterprises enhance customer and partner loyalty.

They specialize in designing end-to-end loyalty and engagement systems that enable brands to build strong, data-driven relationships and drive long-term growth.

Their product suite includes Loyalty+ for advanced loyalty management, Engage+ for connected engagement, Insights+ for predictive analytics, Rewards+ for rewards management, and a Customer Data Platform (CDP) for unified customer insights.

They serve over 410 brands across 47 countries.

Capillary Tech IPO is a mix of fresh share sale of ₹345 crore and an offer for sale of ₹532.50 crore. The company plans to use the fresh proceeds from the share sale for:

• Investment in research, designing and development of products and platform
• Investment in purchase of computer systems for business
• Funding cloud infrastructure cost

• 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.

Capillary Technologies India IPO was subscribed 3.91 times on the third day of the bidding process on Tuesday. Here's how different quotas were booked:

QIB: 2.52 times

NII: 7.78 times

Retail: 3.14 times

Employee: 3.21 times

Capillary Technologies India IPO was subscribed 1.14 times on the third day of the bidding process on Tuesday. Here's how different quotas were booked:

QIB: 0.31 times

NII: 2.36 times

Retail: 1.92 times

Employee: 2.49 times

• 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 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