Capillary Technologies Shares Rally After Weak Market Debut

Capillary Technologies, the Bengaluru-based AI-driven SaaS firm, made headlines on November 21 as its shares debuted on the stock exchanges. Initially opening lower than its IPO price, the stock quickly recovered, reflecting strong investor confidence.

The shares listed at Rs 560 on BSE, down 2.95% from the IPO price of Rs 577, marking a cautious start. On NSE, the discount was narrower, with shares opening at Rs 571.90, 0.88% below the issue price. However, investor sentiment quickly turned positive, with the stock surging 8.38% from its listing price to close at Rs 606.90 on BSE—an overall gain of 5.18% from the IPO price. This pushed the company’s market capitalization to over Rs 4,813 crore by the end of the first day.

The Rs 877.5-crore IPO of Capillary Technologies saw overwhelming demand during its three-day public subscription period from November 14 to 18. The IPO was subscribed nearly 53 times overall, with Qualified Institutional Buyers (QIBs) showing maximum interest, subscribing over 57 times their allocated portion. Retail investors also displayed strong appetite, booking the retail quota around 16 times.

Ahead of listing, the company’s unlisted shares were trading at a grey market premium of around 10.39% over the IPO price, setting high expectations. However, the initial listing performance fell short of this benchmark before the stock surged.

Capillary Technologies offers artificial intelligence-based cloud-native Software-as-a-Service solutions focused on loyalty management and customer engagement. The IPO comprised a fresh issue of Rs 345 crore shares and an offer-for-sale of Rs 532.5 crore by promoters and early investors.

The company raised nearly Rs 394 crore from 21 anchor investors a day before the public subscription, with major allocations going to domestic mutual funds including SBI, ICICI Prudential, Kotak Mahindra, Axis, Aditya Birla Sun Life, Mirae Asset, and others. International funds such as Amundi, HSBC Global, and Matthews India Fund also participated.

Proceeds from the fresh issue are planned for strengthening cloud infrastructure (Rs 143 crore), research and development (Rs 71.6 crore), new computer systems (Rs 10.3 crore), and funding inorganic growth along with general corporate purposes.

Capillary Technologies’ listing day reflects a dynamic investor response, combining cautious initial trading with rapid recovery, underlining the market’s belief in its AI-driven SaaS potential and robust subscription-based revenue model.