Capillary Technologies IPO 2025: Price, Review, Financials & More

• Market Drivers: AI adoption in marketing, shift to omnichannel retail, and data privacy regulations (first-party data importance).
• India Outlook: India is becoming a hub for global SaaS products. The domestic market is also maturing with enterprise adoption of CRM tools in retail, BFSI, and hospitality.

• Mission: To help brands get a 360-degree view of their customers and interact with them through personalized communication.
• Scale: Serves 410+ brands across 47 countries.
• Key Clients: Tata, Domino’s, PUMA, Shell, Jockey, and Al-Futtaim Group.

• Core Business: The company operates a "Loyalty Cloud" platform. Key products include:
  • Loyalty+: Managing loyalty programs.
  • Engage+: Omnichannel engagement.
  • Insights+: Analytics and reporting.
• Market Position: A leader in the Asian loyalty SaaS market with a growing footprint in the US and Middle East.
• Promoter & CEO:
  • Aneesh Reddy Boddu: Founder & Managing Director.
  • Promoter Entity: Capillary Technologies International Pte. Ltd.
• Litigation/Risk Factors:
  • Standard operational risks involving data privacy laws (GDPR/DPDP).
  • No major criminal litigation highlighted in recent filings, though standard tax/regulatory disputes exist as with most corporate entities.

• Offer Closes: Nov 18, 2025
• Final Allotment: Nov 19, 2025
• Refunds/Demat Credit: Nov 20, 2025
• Listing Date: Nov 21, 2025 (Friday)

Repayment of Borrowings: reducing debt burden to improve the balance sheet.

• Product Development: Investment in AI and cloud tech capabilities.
• Strategic Acquisitions: Funding inorganic growth (M&A).
• General Corporate Purposes.

• Turnaround Story: FY25 marked the first year of reported Net Profit (₹14.15 Cr) after consecutive years of losses.
• Valuation:
  • P/E Ratio: ~299x (Based on FY25 earnings). This is considered aggressive/expensive.
  • EBITDA Margin: Improved to ~13%, showing operational leverage.
• Net Revenue Retention (NRR): ~121% (Indicates existing clients are spending more, a healthy SaaS metric).

• Global Peers: Salesforce, Adobe, HubSpot, Oracle.
• Domestic/Niche Competitors: MoEngage, CleverTap, Netcore.
• Comparison: Capillary is significantly smaller than Salesforce or Adobe but trades at a higher P/E multiple (~299x vs Salesforce ~40x), justified only if it sustains hyper-growth.

• The "Subscribe" Argument: The IPO was subscribed ~53x (QIBs subscribed ~57x), indicating strong institutional confidence despite the high price. The SaaS "recurring revenue" story is attractive to long-term funds.
• The "Avoid" Argument: The valuation is steep. For retail investors, the margin of safety is low. If the listing pop is small, the stock might correct as it seeks a fair value P/E.

• If Allotted: Watch the pre-open rates. Given the high subscription, a premium listing (10-15%) is possible. Risk-averse investors may book profits.
• If Not Allotted: Avoid chasing the stock immediately on listing day if it opens at a high premium, as the valuation is already stretched.

Capillary Technologies is a "high-growth, high-risk" bet. It checks the boxes for a modern, AI-driven SaaS company with global reach. However, the financials (thin profits) and valuation (expensive P/E) suggest that the current price creates a "perfection" expectation—the company must continue to grow rapidly to justify the stock price.