Capillary Technologies’ IPO saw a very strong response from investors. The IPO was subscribed nearly 53x times overall on its last day.
As per the latest available update the grey market premium for the IPO was up nearly 8% at Rs 46. This indicates that the issue may list at a 8% higher rate compared to the upper end of the issue price- Rs577 per share.
However, readers must remember that the GMP is an unofficial metric of investor sentiment. The actual listing price can be very different.
Here is a detailed analysis of the issue –
Capillary Technologies IPO: Subscription details
The IPO has been subscribed 52.94 times, seeing a notably high subscription in the non-institutional category (NII) which was subscribed 69.83 times. The qualified institutional buyer segment was subscribed 52.27 times, while the retail portion was subscribed 15.79 times.
Capillary Technologies IPO details
The IPO is a book build issue of Rs 877.50 crore. The company had set the IPO price band at Rs 549 to Rs 577 per share. The offer includes a fresh issue of 60 lakh shares worth Rs 345 crore and an offer of sale component of 92 lakh shares aggregating to Rs 532.5 crore.
Capillary IPO: Investors bid size
Investors can bid for a minimum of 25 shares in multiples of 25. Retail may bid for a minimum of 25 shares worth Rs 14,425 (based on the upper price). Small non-institutional investors (NIIs) can bid for 14 lots, which equals 350 shares worth Rs 2,01,950. The lot size for big NIIs is 70 lots, equating to 1,750 shares worth Rs 10,09,750.
Capillary IPO Objectives
Through the issue, the company plans to utilise about Rs 151.54 crore for research and development purposes. The tech firm plans to allot Rs 120 crore towards cloud infrastructure costs, followed by the allocation of Rs 10.32 crore funds towards its for inventory purchases. The remaining funds are likely to be used for inorganic growth initiatives and other corporate purposes.
Capillary IPO Structure
Minimum 75% of the net offer shall be available to the Qualified institutional buyers. Further, up to 15% of the offer shall be allocated to non-institutional investors, and 10% of the offer shall be made available to retail individual bidders.
Retail institutional investors may bid up to shares worth Rs 1.8 lakhs. In certain cases, employees will be given a discount if the bidding goes up to the amount of Rs 2 lakhs.
Capillary IPO: Key dates to watch
The company’s IPO is expected to be finalised by November 19 and the shares are likely to be credited to the demat account of the subscribers by November 20. The initiation of refunds will also likely take place on November 20. The listing of shares on NSE and BSE is expected by November 21. JM Financial, IIFL Capital, and Nomura Financial Advisory are managing the Capillary’s IPO, while MUFG India is the registrar to the offer.
