Excelsoft Technologies, a provider of technology-driven learning and assessment solutions, is set to enter the capital markets to raise up to Rs 700 crore through an initial public offering (IPO). The offering will include a fresh issue of equity shares worth Rs 210 crore and an offer-for-sale (OFS) of shares amounting to Rs 490 crore, as outlined in the company’s draft red herring prospectus filed on February 28.
As part of the OFS, promoters Pedanta Technologies and Dhananjaya Sudhanva will offload shares worth Rs 340 crore and Rs 150 crore, respectively. Additionally, the Karnataka-based SaaS firm is considering a pre-IPO round to raise up to Rs 270 crore. If this placement is undertaken, the IPO size—both in terms of fresh issuance and the OFS component—will be adjusted accordingly, the company stated.
Excelsoft plans to utilise proceeds from the fresh issue to acquire land, construct a new facility, and upgrade external electrical systems at its existing Mysore, Karnataka facility. A portion of the funds will also be allocated for IT infrastructure enhancements and general corporate purposes.
Operating across 17 countries with 71 clients, Excelsoft has no directly comparable peers in the listed space. Financially, the company reported a sharp decline in net profit for FY24, down to Rs 12.75 crore from Rs 22.4 crore in the previous year. Meanwhile, revenue saw a modest increase to Rs 198.3 crore from Rs 195.1 crore.
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