Upcoming IPO: Excelsoft Technologies files draft papers with SEBI for ₹700 crore IPO | Stock Market News
Source: Live Mint
Upcoming IPO: Global vertical SaaS company Excelsoft Technologies, on March 2, said that it has filed draft red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹700 crore through an initial public offering (IPO).
As per the DRHP, the Karnataka-based company’s proposed IPO consists of a fresh equity issue totaling up to ₹210 crore and an offer for sale (OFS) of shares worth up to ₹490 crore by the promoter selling shareholders, Pedanta Technologies Private Limited and Dhananjaya Sudhanva.
Excelsoft Technologies plans to allocate the net proceeds from the fresh issue towards capital expenditure, including the purchase of land and construction of a new building, as well as upgrading and enhancing the external electrical systems of its existing facility in Mysore. Additionally, the funds will be used for upgrading the company’s IT infrastructure, covering software, hardware, and communication & network services, along with general corporate purposes.
The company, in coordination with the BRLMs, may explore a Pre-IPO Placement by issuing additional equity shares worth up to ₹30 crore, or through a secondary sale of equity shares by the selling shareholders amounting to ₹240 crore, or a combination of both, before filing the Red Herring Prospectus with the ROC. If the Pre-IPO Placement takes place, the fresh issue size will be adjusted accordingly.
Anand Rathi Advisors Limited is the Book Running Lead Manager to the issue.
About the company
With over two decades of experience, Excelsoft provides technology-based solutions across diverse learning and assessment segments through long-term contracts with enterprise clients worldwide. As on December 31, 2024, it caters to 71 clients spread across 17 countries, including USA, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE and Canada.
Some of its prominent and long-standing clients are Pearson Education, Inc., AQA Education, Colleges of Excellence, NxGen Asia PTE LTD., Pearson Professional Assessments Limited, Sedtech for Technology Education & Learning WLL, Ascend Learning LLC, Brigham Young University – IDAHO, Training Qualifications UK, Surala Net Co. Ltd., Excel Public School and The Chartered Quality Institute.
Excelsoft reported revenue from operations of ₹198.3 crore in FY24, with a PAT of ₹12.75 crore. As per the draft prospectus, there are no listed companies or peers in India that have business composition and segment contribution similar to it.
The global SaaS market has seen rapid growth, with vertical SaaS emerging as a dominant trend that promises specialized, industry-tailored solutions. This shift has positioned vertical SaaS to grow at an even faster pace than general SaaS, with estimates suggesting that vertical SaaS could account for nearly 50% of the SaaS market by 2030, according to an Arizton report.
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