Capillary Technologies owns up to 13% of Rocket’s share. Should you buy, sell or hold the stock?

Capillary Technologies India shook off a disappointing listing to post a sharp intraday rebound on Friday, with its shares trading on the BSE at Rs. 560 from a starting price of Rs. 633 jumped as much as 13%, reviving investor interest in the SaaS player just hours after its IPO debuted at a discount price.

Off to a slow start, Capillary Technologies India listed on the BSE at Rs. 577 listed at a 2.9% discount to the issue price, which is Rs. Opened at 560. On the NSE, the share traded at Rs. It started trading at 571.90, a 0.9% discount to the IPO price. However, sentiment changed sharply during the session as buying interest picked up.

On the BSE, the stock rose 13% from the opening print to Rs. 633 intraday high was reached. On the NSE, it was Rs. 571.9 from an opening level of Rs. It rose by 10.8% to 633.9.

The strong move came despite the gray market outlook being more optimistic than reality at the time of listing. The last GMP for the Capillary Technologies IPO before it hits the stock exchanges is Rs. was at 55, indicating an expected return of 9.53%. Instead, shares opened at a discount of about 3%.

Capillary Technologies IPO Snapshot

Closed on November 18 Rs. 878 crore issue witnessed heavy demand across categories. Qualified Institutional Buyers (QIBs) subscribed 57.3 times, Non-Institutional Investors (NIIs) 69.85 times and Retail Investors 15.85 times.

Ahead of the public issue, the company on November 13 raised Rs. 393.98 crore was raised, out of which 68.28 lakh shares were allotted to global and domestic institutions.

In IPO Rs. 345.2 crore fresh issue and Rs. 532.5 crore worth of the offer for sale, with each share priced at Rs. 577 – which is the top end of the price band.

Should you buy, sell or hold Capillary Technologies?

Shivani Nyati, head of wealth at Swastik Investmart, highlighted the stock’s debut and outlook and said the subdued listing reflects investor caution despite Capillary’s strong position as a SaaS-based customer engagement and loyalty solutions provider serving major retail and consumer market brands across India. She said the capillary core powers are intact.

“Capillary’s strengths lie in its AI-powered loyalty management platform, deep enterprise client relationships, strong presence across Asia and the Middle East, and consistent revenue growth driven by subscription-based recurring revenue. Its diverse product suite—loyalty programs, customer data platforms and engagement automation—provides the potential for long-term growth and growth,” it said, warning that the market is weighing meaningful risks.

Investors remain cautious due to high competition in the SaaS and martech space, rising customer acquisition costs and the need to increase company profitability to justify valuations,” said Nyati.

On the strategy for investors acquiring shares in the IPO, Nyati said “Given the discounted listing, investors and traders may consider holding the stock with a medium- to long-term perspective, while keeping a tight stop-loss around Rs 520 to manage downside risk.”

Capillary business and finance

Capillary Technologies is one of India’s leading SaaS companies in customer loyalty, omnichannel CRM and AI-led engagement. Its software stack supports more than 250 brands in 30 countries, including Tata, Shell, Domino’s, Jockey and PUMA. Revenue is primarily generated through subscription fees, marketing automation services, analytics tools and enterprise loyalty platforms.

The financial profile of the company has improved in recent years. After posting a loss through FY24, Capillary turned profitable in FY25, up from Rs. 68.35 crore as against a loss of Rs. 14.15 crores PAT was reported. Total revenue increased by 14% YoY to Rs. 611.87 crores. In the six months ended September 2025, revenue stood at Rs. 362.56 crore, while the profit was Rs. 1.03 crores.

Proceeds from the fresh issue will be used to expand cloud infrastructure, accelerate research and product development, strengthen IT hardware and fund potential acquisitions. For cloud infrastructure expenditure around Rs. 143 crore has been allocated, out of which another Rs. 71.58 crore has been earmarked for R&D investments.

The brokerages noted that Capillary’s SaaS-led, recurring-revenue model offers strong visibility and client stickiness, but also flagged that valuations remain aggressive.

Also Read | Shares of Capillary Technologies got off to a slow start, listing at a 3% discount to the IPO price

(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of Economic Times)