Excelsoft Technologies IPO Day 3: Issue subscribed 17.97 times so far. Check GMP, key dates, review. Apply or not?

The initial public offering (IPO) of Excelsoft Technologies, which opened on Wednesday, November 19, is set to conclude today, November 21. The issue was oversubscribed 6.89 times as of the second day of the share sale on Thursday.

Excelsoft Technologies' IPO price band is fixed at ₹114-120 per share, giving the company a valuation of approximately ₹1,380 crore at the upper end of the issue price.

In the IPO, Excelsoft Technologies has reserved a maximum of 50% of the shares for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and a minimum of 35% for retail investors.

The allotment for Excelsoft Technologies IPO will be finalised on Monday, November 24, with refunds to be processed on Tuesday, November 25. On the same day following the refunds, the shares will be transferred to the demat accounts of the allottees. Excelsoft Technologies shares are expected to be listed on the BSE and NSE on Wednesday, November 26.

Having more than twenty years of experience, Excelsoft offers technology-driven solutions across various learning and assessment areas through long-term agreements with enterprise clients globally.

Some of its notable clients include Pearson Education, Inc., AQA Education, Colleges of Excellence, NxGen Asia PTE LTD, Pearson Professional Assessments Ltd, Sedtech for Technology Education & Learning WLL, Ascend Learning LLC, Brigham Young University--IDAHO, Training Qualifications UK, Surala Net Co Ltd, Excel Public School, and The Chartered Quality Institute.

Excelsoft Technologies IPO GMP today

Excelsoft Technologies IPO GMP today is ₹14. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Excelsoft Technologies share price was indicated at ₹134 apiece, which is 11.67% higher than the IPO price of ₹120.

Based on the grey market activities from the last 10 sessions, the current grey market premium (GMP) is ₹14, indicating a decline. The lowest recorded GMP is ₹0.00, while the highest has reached ₹30, according to analysts.

Grey market premium indicates investors' readiness to pay more than the issue price.

Excelsoft Technologies IPO subscription status

By 3:36 PM on day 1 of bidding, the public issue had been subscribed 41.43 times, the retail portion of the public issue had been booked 14.38 times, whereas the NII segment had been filled 99.66 times. The QIB portion had been booked 45.08 times.

Excelsoft Technologies IPO review

Canara Bank Securities pointed out that valuations are quite high at approximately 39 times FY25 price-to-earnings ratio and about 57 times annualized for Q1FY26, significantly exceeding those of competitors and necessitating justification through execution.

According to the brokerage, although Excelsoft provides proprietary technology, maintains long-term relationships, and benefits from structural growth trends, its short-term performance may remain subdued.

Canara Bank Securities recommends the IPO primarily for long-term investors who have a high risk appetite and are looking to take exposure to scalable EdTech platforms that have consistent EBITDA and robust cash flows.

Swastika Investmart noted that the company showed strong financial vitality, as evidenced by an approximately 172% increase in PAT for FY25. However, it is heavily dependent on the Pearson Education Group, which accounts for about 59% of its revenue, creating a considerable risk of disruption.

Swastika Investmart believes that the valuation seems steep (P/E around 35), resulting in a neutral rating with the anticipation of only a modest gain upon listing.

Excelsoft Technologies IPO details

The firm aims to raise ₹180 crore by offering new shares, while promoter Pedanta Technologies plans to divest shares worth up to ₹320 crore through an offer-for-sale. The overall size of the offer has been reduced from the previously intended ₹700 crore, according to the draft documents submitted to SEBI in February this year. The capital markets regulator approved the IPO documents in July. The original offer included a fresh share issuance of ₹210 crore, coupled with an offer-for-sale of shares amounting to ₹490 crore.

Promoters own a 94.60% stake in the company, while the public holds the remaining 5.4% of shares. Anand Rathi Advisors is the sole book-running lead manager associated with the Excelsoft Technologies IPO, and MUFG Intime India Pvt Ltd serves as the issue's registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.