Excelsoft IPO Rush: Why Investors Are Racing to Grab Shares Today

The initial public offering (IPO) of Excelsoft Technologies, which was already moving, attracted investors steadily closing tomorrow after a three-day window, which opened on November 19, thus completed the second day of participation Thursday.

The SaaS firm from Mysuru, which is active in the market of learning and assessment solutions, is aiming to increase its fund to Rs 500 crore via its first public offering of shares. The price range has been set at Rs 114–Rs 120 per share, of which, Rs 180 crore is for new issuance and the other ₹320 crore is for the sale of existing shares.

The allotment of shares is being handled by MUFG Intime India, which is acting as registrar, while Anand Rathi Advisors is managing the issue.

The company will hold share allotment for November 22 and together with unsuccessful applicants, it will also be making refunds plus credit of shares for those allotted on November 24. The shares are scheduled for November 26 to have their market debut at BSE and NSE.

How the Funds Will Be Used

Excelsoft will spend the cash through a number of capital projects, such as:

acquiring land and building a new plant,

electrical infra in Mysuru connectivity upgrade,

IT systems fortification, and

general corporate needs funding.

The firm had already gathered ₹150 crore from anchor investors on November 18 before the launch.

Investor Categories and Lot Size

The allocation of the issue is 50% for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional bidders. One lot consists of 125 shares, and the entry-price for retail investors at the upper limit of the price band would be Rs 15,000. The retail applicants are allowed to bid for a maximum of 13 lots.

Excelsoft has a portfolio of 76 clients distributed in 19 countries as of the end of August, 2025. The company’s profit after tax has varied over the past years—

FY23: Rs 22.41 crore

FY24: Rs 12.75 crore

FY25: Rs 34.69 crore

Profit for the quarter ended June 30 of the current fiscal year was Rs 6 crore.

Revenue has gradually moved up:

FY23: Rs 195.1 crore

FY24: Rs 198.3 crore

FY25: Rs 233.29 crore

Revenue for the June quarter was Rs 55.72 crore.

The Excelsoft Technologies IPO GMP was around Rs 15.5 at the end of November 20, meaning a probable listing at approximately Rs 135.5—about 12.9% higher than the upper price band. The grey market is a benchmark that shows unofficial trades which simply indicates how much extra the investors are willing to pay over the issue price.

By 11:10 a.m. on the second day, the IPO had attracted bids of 8.19 crore shares against a total of 2.91 crore shares available for sale. Thus the subscription rate was 2.81 times.

Retail investors: 3.23×

NIIs: 5.56×

QIBs: 2% so far

On Day 1 the rate was 1.56×.

Lakshmishree Investment has recommended investors to subscribe, calling long-term contracts, AI-based solutions, and the presence in different countries as significant factors driving the creation of future value. The company stated that the funds raised through the IPO could be used to support the expansion and upgrade of technology in the Mysore facility.

SBI Securities has maintained a neutral view, noting a strong profit CAGR of 24.4% for FY23 to FY25 but a sluggish revenue CAGR of less than 10% being the case. The brokerage reported the company's cash amount of ₹248 crore as of June 2025 and a RoIC of 19.5% (cash excluded). At the price of Rs 120, the IPO implies a FY25 P/E of 39.8×, which SBI characterizes as fairly valued against competitors.

Nevertheless, Reliance Securities made a subscribe call. The firm brought to light Excelsoft's financials that have been stable over the years, the company’s increasing profits, and its specialized global presence in the learning tech industry. The brokerage further said that the long-term value creation will be determined by the scaling up of operations, the introduction of innovations through AI, and the successful management of capital expenditures.