Capillary Technologies IPO

Capillary Technologies India limited is a technology-first firm that provides cloud-native artificial intelligence (“AI”)-based Software-as-a-Service (“SaaS”) products and solutions like automated loyalty management and consumer data portals. They are now one of the world’s major travel distribution companies. Capillary Technologies IPO will hit the market in May 2021.

About Capillary Technologies

They assist their major corporate clients in cultivating consumer and channel partner loyalty. Clients may manage end-to-end loyalty programmes, gain a full perspective of clients, and offer unified, cross-channel approaches that create a real-time omnichannel, personalised, and uniform experience for clients thanks to their diverse product portfolio and technological platform.

Depending on the geographies in which they compete, they are the leading company in the Asia-Pacific area, with a 39 percent market share in terms of reputation management skills in 2020.

With the purchase of Persuade Group in September 2021, they have rapidly added their operations in the United States. They concentrate on intellectual property development, and they now own eight patents and 38 trademarks.

Customer Loyalty

The following are key characteristics of a customer Loyalty:

• Not readily swayed by price or availability.
• Not actively looking for alternative suppliers.
• Joining a loyalty programme, according to 83 percent of customers, will encourage them to make repeat transactions.
• Willing to recommend a product or service to their family and friends.
• If a company has a solid loyalty programme, over 70% of customers are more inclined to suggest it.
• Open to various products or services offered by a specific company.
• When problems arise, have more patience and trust in a company’s ability to resolve them.
• Willing to provide comments on how a company’s products or services might be improved.
• When the necessity arises, I’m likely to purchase from the brand again.

Solutions

In today’s hyper-competitive environment, brands and businesses are finding it increasingly challenging to gain and sustain consumer loyalty.

Their solution, which is powered by AI and machine learning and built on a current technological stack, allows clients to use their current facilities to recognize and analyze every client and communicate with them across channels.

Their proprietary SaaS solution is a loyalty programme that is cardless and mobile-first, closing the loop on generating leads, interaction, and maintenance. Firms are launching mobile apps to drive loyalty campaigns because 76 percent of buyers use their phones to shop. (Source: Zinnov Report)

To unlock growth potential, their SaaS offerings focus on integration with their clients’ existing technological stack and resource management.

Capillary Technologies India IPO

Capillary Technologies India Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 850 crore on 24 December 2021.

The offer includes a fresh issue of INR 200 crore and there is offer for sale (OFS) of 650 crore value equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 40 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	86.36	81.59	86.19	71.14
Total Revenue	33.70	123.16	167.60	174.95
Profit After Tax	2.53	16.94	0.21	(11.67)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	3.54	3.54	3
Financial Year 2020	0.04	0.04	2
Financial Year 2019	(2.44)	(2.44)	1
Weighted Average	1.38	1.38
30 Sep. 2021	0.53	0.53

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the fundamental elements that go into determining the Offer Price:

• With intense domain expertise, Asia’s dominant player in client interaction and loyalty administration.
• Following the acquisition of Persuade, the company’s US operations have experienced tremendous growth and profit margins.
• In the loyalty sector, strong alliances and great recall are important.
• Client interactions of high quality and variety.
• Loyalty management systems that are robust.
• Infrastructure built on the cloud that can scale.
• A platform that can be used for a variety of purposes.
• SaaS solutions with cutting-edge analytics and AI.
• Healthy expansion with a track record of operating leverage.
• Experienced management team with a strong investor base.

Peer Comparison

There are no publicly traded firms in India that operate in a similar industry to theirs. As a result, providing an industry comparison in regard to their Company is not feasible.

Capillary IPO Details

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Issue Type	Book Building
Face Value	2 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	850 crore
Fresh Issue	200 Crore
Offer for Sale	650 Equity Shares

Capillary Technologies IPO Date

Capillary Technologies IPO opening date is May 2021, and the closing date is May 2021. The Capillary Technologies issue may list in May 2021.

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Basis of Allotment Date	May 2021
Initiation of Refunds	May 2021
Credit of Shares to Demat Account	May 2021
IPO Listing Date	May 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Capillary Technologies India Limited IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Capillary Technologies India IPO.

Capillary Technologies IPO GMP

Capillary Technologies IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
May 2021
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May 2021
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May 2021

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Capillary Technologies IPO Review

Capillary Technologies India IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Capillary Technologies IPO is good or bad.

Capillary Technologies India IPO Risk

• They may be unlikely to recruit new clients in a cost-effective manner, causing their firm to suffer.
• Their business will suffer if the prices they bill for their solutions and services are inappropriate to their clients.
• They rely on a small number of clients to create a substantial portion of their revenue.
• Their operating performance may suffer if we do not succeed in implementing their goal to grow sales of their solutions to new and existing large business clients.
• The COVID-19 epidemic has had a negative impact on their business and operations.
• This Draft Red Herring Prospectus’ Proforma Financial Details is not reflective of their future financial position.

Other Threats

• Stock option grants made under their employee stock option programs may result in a charge to their profit and loss account, reducing or increasing overall earnings or losses to that extent.
• In terms of privacy and data security, they are bound by a number of Indian and international laws and regulations.
• They have a history of net losses, and they expect their expenses to rise in the future.
• Their financing agreements oblige them to adhere to certain restrictive covenants.
• Their sales cycles can be long and very unexpected, and their sales efforts take a lot of time and money.
• Foreign currencies exchange rate volatility may have a negative impact on their results of operations.

Clients

They offered approximately 250 brands in India, the United Arab Emirates, Saudi Arabia, Singapore, Indonesia, Malaysia, Thailand, the United States, and China as of October 31, 2021.

Their clients and brands span a variety of industries and jurisdictions. Apparel, footwear, supermarkets, conglomerates, production and electronics, pharmacy and healthcare, fine dining and QSR, beauty and jewellery, entertainment, tourism, and hospitality are among their clients.

Large enterprise clients are increasingly using their technology. Total revenue from operations for fiscal years 2019, 2020, and 2021, as well as the three months ended June 30, 2021, were 1,731.48 million, 1,661.23 million, 1,149.03 million, and 331.66 million, respectively, according to their Restated Summary Reports.

Partnerships and High Recall in the Loyalty Industry

They have a synergistic client acquisition strategy in which they emphasis on adding corporate clients to their portfolio by using their direct sales efforts and broad partner network, and they can cross-sell their products to extract additional value.

According to their Arithmetic Aggregated Adjusted Capillary Information, their partners contributed 7.43 percent of ARR in Fiscal 2021.

Their partners are major network integrators and consulting businesses with relationships with the majority of Asia’s major corporations.

They are the only firm from Asia to be recognised as a premier vendor of hybrid loyalty services in the Forrester NowTech Loyalty Report. Gartner and Forrester, the industry’s premier analysts for major companies, have included them in many reports.

Capillary Technologies India IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Capillary Technologies India Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
May 2021	1
May 2021	2
May 2021	3

Management

They are lead by a group of seasoned individuals with substantial loyalty and CRM experience. Their senior management team’s knowledge and connections in the sector have aided us in expanding their business.

Aneesh Reddy Boddu, their Executive Director and CEO, has vast business expertise and has been named one of Fortune India’s “Forty Under 40” leaders.

He was also a co-founder of the Indian Institute of Technology – Kharagpur’s Entrepreneurship Cell and received the institute’s Distinguished Alumnus Award.

Anant Choubey, their Executive Director and COO, is also a graduate of the Indian Institute of Technology – Kharagpur. He has been with them since the beginning and has played a key role in their development from India into Southeast Asia as well as their acquisition growth.

Promoter

• Capillary Technologies International Pte. Ltd

Promoters’s Holding

Pre Issue Share Holding	98.06
Post Issue Share Holding

Capillary Technologies Prospectus