The IPO race band for November continues as one more company is going to put out its issue. The Indian tech firm Capillary Technologies is set to open its issue on November 14. Here are the details for the Capillary’s IPO
Capillary IPO: Issue details
Capillary Technologies IPO is a book build issue of Rs 877.50 crore. The company has fixed the price band of the shares at Rs 549 to Rs 577 per share. This includes fresh issue of 60 lakh shares worth Rs 345 crore and an offer of sale component of 92 lakh shares worth Rs 532.5 crore.
The IPO will open for subscription on November 14, will bid for three days and close on November 18. JM Financial, IIFL Capital, and Nomura Financial Advisory are managing the Capillary’s IPO, while MUFC is the registrar to the offer.
Capillary IPO: Investors bid size
Investors can bid for a minimum of 25 shares in multiples of 25. Retail investors may bid for a minimum of 25 shares worth Rs 14,425 (based on the upper price). Small Non institutional investors can bid for 14 lots which equals to 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 Technologies International and Aneesh Reddy Boddu are the promoter group of the company and currently hold 67.9% of the issue.
Capillary IPO Objectives
Via the IPO, the tech firm is likely to use about Rs 151.54 crore for research and development, followed by Rs 120 crore towards cloud infrastructure costs. It is expected to allocate Rs 10.32 crore for inventory purchases, while the remaining funds will likely 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
Tentatively, 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.