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Capillary Tech IPO Lists with a Dip
21 Nov
Summary
- Capillary Technologies' shares debuted slightly below their IPO price.
- The IPO attracted robust demand from institutional and retail investors.
- The company achieved profitability in FY25 after prior losses.
Capillary Technologies India's shares commenced trading on Friday with a modest discount, listing below their IPO price on major exchanges. This debut occurred despite the company's initial public offering experiencing robust demand across institutional and retail investor categories. The Rs 878 crore IPO was heavily oversubscribed, indicating strong market interest.
Financially, Capillary Technologies has demonstrated a notable turnaround. After incurring losses in the previous fiscal year, the company reported profitability in the current fiscal year, a crucial development for investor confidence. Its software solutions cater to over 250 brands globally, emphasizing its significant reach in the customer loyalty and CRM SaaS market.
The company plans to utilize the IPO proceeds for strategic enhancements, including scaling cloud infrastructure and investing in research and product development. While brokerage analyses suggest aggressive valuations, the firm's recurring revenue model and strong client base provide a solid foundation for future growth.
