Capillary Technologies Shares Surge 13% After Listing at 3% Discount on BSE

Capillary Technologies witnessed a volatile yet ultimately strong market debut on November 21, with its shares initially listing at a discount but later rallying sharply. The volatility came despite strong subscription numbers for the company’s ₹877.5-crore initial public offering (IPO), which drew significant investor interest during the three-day bidding window from November 14–18.

Weak Listing Despite Strong IPO Demand

Capillary Technologies’ shares were listed at ₹560 apiece on the BSE, marking a 2.95% discount to the IPO issue price of ₹577 per share. At this price, the company’s market capitalisation stood at over ₹4,400 crore.

On the NSE, the stock debuted with a comparatively smaller discount of 0.88%, opening at ₹571.90 per share.

The discounted listing came as a surprise, considering the IPO was subscribed nearly 53 times, signalling robust demand across investor categories.

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Stock Recovers, Erases Listing Losses and Climbs 13%

Shortly after listing, Capillary Technologies’ stock gained strong upward momentum. The shares surged 13% from the listing price, trading at ₹633 apiece on the BSE, effectively wiping out all opening day losses.

At this level, the stock was trading at nearly 10% above the IPO price of ₹577, marking a positive turnaround after a weak start.

Grey Market Expectations Missed

The actual listing and subsequent price movement failed to match grey market expectations. Before listing, the company’s unlisted shares were trading with a 9.53% grey market premium (GMP) over the IPO price, as per Investorgain data.

The lower-than-expected listing price suggested the grey market’s optimism did not fully translate into opening day valuations.

Details of the ₹877.5-Crore IPO

Capillary Technologies, a provider of artificial intelligence-driven cloud-native Software-as-a-Service (SaaS) products and solutions, launched its IPO to raise ₹877.5 crore. The issue comprised:

• Fresh issue:
  ₹345 crore

• Offer for Sale (OFS):
  92.28 lakh shares, aggregating to ₹532.5 crore, sold by:

  • Promoter: Capillary Technologies International

  • Investor: Trudy Holdings

A day before the IPO opened, the company allocated ₹394 crore to 21 anchor investors on November 13, signalling strong institutional confidence.

Utilisation of IPO Proceeds

Capillary Technologies outlined a detailed utilisation plan for the fresh issue funds:

• ₹143 crore for cloud infrastructure

• ₹71.6 crore for research, designing, and product/platform development

• ₹10.3 crore for purchasing computer systems

• Remaining funds to be allocated towards:

  • Inorganic growth initiatives

  • General corporate purposes

These allocations highlight the company’s focus on strengthening technology capabilities and supporting business expansion.

A SaaS Company With Strong Investor Attention

Capillary Technologies operates in the SaaS domain, offering AI-based cloud-native products and solutions. The company’s IPO drew significant subscription levels, reflecting investor interest in technology-driven enterprise solutions.

Despite the initial discount at listing, the swift recovery and subsequent rally indicate strong secondary market appetite, even as the stock’s performance diverged from grey market trends.

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