Capillary Technologies to file draft prospectus for IPO this week

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Capillary Technologies to file draft prospectus for IPO this week

Customer loyalty and customer engagement solutions provider Capillary Technologies is expected to file its draft red herring prospectus DRHP for an initial public offering IPO this week, according to sources close to the development.

The Bengaluru-based company will file draft papers with the Securities and Exchange Board of India SEBI on Thursday or Friday. If there is a delay due to the Christmas week, the filing will be made on Monday, sources said.

Capillary is hoping to raise around 900 -- 1,000 crore via the IPO, which includes a primary component of Rs 250 crore while secondary share sales are expected to be the focus of the balance as some of its early investors are expected to clock partial exits. Sequoia Capital will make a partial exit on its nearly decade-old investment while Warburg Pincus, which invested in 2016, is unlikely to sell any of its shares. Early investors include American Express Ventures, Norwest Venture Partners, and Qualcomm Ventures.

The company is hoping to get a listing in April-May, depending on the approval of the DRHP by the SEBI.

Five new independent directors have been appointed by Capillary ahead of the IPO. The new directors include Neelam Dhawan, former MD of HP and Microsoft India, Farid Kazani, ex MD and Group CFO of Majesco Limited and Mastek, Sameer Garde, former President of Cisco and Dell, Venkat Tadanki, Managing Partner, Anvaya Ventures, and Yamini Bhat, co-founder of Vymo.

Capillary, founded in 2008 by Aneesh Reddy and Krishna Mehra, provides cloud-based, omnichannel loyalty Customer relationship management CRM and e-commerce solutions to retail businesses to unlock customer retention potentials. The company is currently present in China, Middle East, SEA, India and the US. Mehra moved on from the company in 2015.

In September, it acquired Minneapolis-based customer experience company Persuade in its first US acquisition and fourth globally.

A slew of Software as a Service SaaS firms are preparing to hit the public market as a result of the consumer-tech IPO frenzy that began with Zomato's blockbuster stock market debut in July. According to a recent report by The Economic Times, cloud data protection firm Druva is ready to list in the US. Travel and hospitality solution provider RateGain made its stock market debut last week. RateGain has a discount of 15 per cent on the issue price. The firm has a debut at Rs 360 per share, down 15.29 per cent, on the NSE against the IPO issue price of Rs 425. The firm's market cap was 3,843 crore. The firm's shares traded for a total of 20.51 lakh in the last year, a turnover of Rs 73.83 crore on the NSE.