Capillary Technologies gets nod to float IPO

New Delhi: SaaS firm Capillary Technologies India has secured Sebi’s approval to raise funds through an initial public offering (IPO), an update with the markets regulator showed.

The proposed IPO comprises a fresh issue of shares worth Rs 430 crore and an offer for sale (OFS) of 1.83 crore shares by existing shareholders, according to the draft red herring prospectus (DRHP). Those selling shares in the OFS include Capillary Technologies International Pte Ltd, Ronal Holdings LLC, Trudy Holdings, and Filter Capital India Fund I. The company, which filed its preliminary IPO papers with Sebi in June, obtained its observations on September 22. In regulatory terms, Sebi’s observations are equivalent to clearance for launching a public issue.

Going by the draft papers, proceeds from its fresh issuance worth Rs 120 crore will be utilised for funding the company’s cloud infrastructure cost; Rs 151.54 crore for investment in research, designing, and development of its products and platform; and Rs 10.32 crore for investment in the purchase of computer systems for its business.

Besides, proceeds will be used for funding inorganic growth through unidentified acquisitions and general corporate purposes. Earlier in December 2021, the company had filed its IPO papers with Sebi.