Capillary Technologies IPO Subscribed 38% on Day 2, GMP Rises to 5%

The Capillary Technologies IPO continued to draw steady investor interest on the second day of bidding, with the issue subscribed 38% as of 12 pm on November 17.

According to NSE data, the IPO received bids for 31.55 lakh shares against the total offer size of 83.83 lakh shares.

Retail investors showed the strongest traction, subscribing 65% of their allocated quota.
Non-Institutional Investors (NII) subscribed 36%, while Qualified Institutional Buyers (QIB) picked up 29% of their reserved portion.

Grey Market Premium: GMP Moves to 5%

Ahead of listing, the Capillary Technologies IPO GMP climbed to nearly 5% over the issue price, as per Investorgain.
This marks an improvement from yesterday’s 4% but is still below the 9% premium seen on November 14, when the IPO opened.

IPO Watch also reported a similar trend with a 4% grey market premium.

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About the Capillary Technologies IPO

Capillary Technologies, a provider of AI-driven cloud-native SaaS solutions, is looking to raise ₹877.5 crore through the offering.

The issue structure includes:

• Fresh issue: ₹345 crore

• Offer for sale (OFS): 92.28 lakh shares worth ₹532.5 crore, sold by Capillary Technologies International and investor Trudy Holdings

The price band has been set at ₹549–₹577 per share, and the IPO will remain open between November 14 and 18.

Strong Anchor Book Ahead of Launch

A day before the IPO opened, the company secured ₹394 crore from 21 anchor investors.

A major chunk of this allocation — 46.1 lakh shares (67.52%) — went to nine domestic mutual funds, including:

• SBI Mutual Fund

• ICICI Prudential MF

• Kotak Mahindra AMC

• Axis MF

• Aditya Birla Sun Life AMC

• Mirae Asset

• Edelweiss

• PGIM India

• Union MF

Other global investors included Amundi Funds, HSBC Global, Matthews India Fund, Pinebridge Global, Optimix Wholesale Global, Hornbill, and Innoven Capital.

Planned Use of IPO Proceeds

Capillary Technologies plans to allocate the proceeds as follows:

• ₹143 crore for cloud infrastructure

• ₹71.6 crore for product research, design, and development

• ₹10.3 crore for computer system purchases

• Remaining funds for inorganic growth and general corporate purposes

JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) are the merchant bankers for the IPO.

Should Investors Apply?

According to Shravan Shetty, Managing Director at Primus Partners:
“Capillary Technologies IPO is at a steep premium compared to its SaaS peers.”

He adds that although the company has shown a turnaround, its return on net worth remains lower than competitors, implying the need for both scale and efficiency to justify valuations.

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