The Excelsoft Technologies IPO enters its final day of bidding on November 21, attracting strong interest across categories. After being subscribed to 6.89 times by Day 2, the issue has now reached 12.36 times overall subscription on Day 3.
The IPO opened on November 19 with a price band of Rs. 114-Rs. 120 per share, valuing the company at approximately Rs. 1,380 crore.
The total issue size stands at Rs. 500 crore, which includes a fresh issue of Rs. 180 crore and an offer-for-sale worth Rs. 320 crore from promoter Pedanta Technologies.
Excelsoft has allocated 50% of the issue to QIBs, while NIIs and retail investors have been allotted 15% and 35% respectively. The lot size for the IPO is 125 shares with the minimum retail investment of Rs. 15,000 at the upper price band.
Promoters hold 94.6% of the company and public shareholders hold the remaining 5.4%.
Anand Rathi Advisors is managing the issue as the lead book runner, and MUFG Intime India Pvt Ltd is overseeing the registrar functions.
The grey market premium (GMP) is currently Rs. 10, suggesting that the stock may list near Rs. 130 based on the upper price band of Rs. 120. This reflects an estimated 8.33% listing gain.
However, GMP has been volatile and has fluctuated from Rs. 0 to Rs. 30 over the last 10 sessions. Indicating changes in the sentiments of grey market participants.
Excelsoft Technologies' IPO was subscribed 12.36 times. The public issue subscribed 8.71 times in the retail category, 0.13 times in QIB, and 37.17 times in the NII category.
As per the latest data, the IPO has received bids for 21,14,24,875 shares against 36,04,59,375 shares on offer.
Retail investors have subscribed to the offering 8.71 times, while the non-institutional investor segment has subscribed 37.17 times. The QIB segment has seen 0.13 times subscription.
Canara Bank Securities believes the IPO is suitable primarily for long-term investors with a high-risk appetite.
The firm notes that the stock is valued at nearly 39 times the FY25 earnings and about 57 times the annualised Q1 FY26 earnings, which is significantly higher compared to peers.
Swastika Investmart acknowledges Excelsoft’s strong financial growth, including a notable 172% rise in PAT for FY25.
However, the firm highlights that almost 59% of the company’s revenue depends on the Pearson group, creating a concentration risk.
Also Read: How Can You Tell if an IPO is Really Worth Your Money? Simple Tips
The allotment for the IPO will be finalised on November 24, followed by refunds and share transfers to demat accounts on November 25. The stock is expected to be listed on both the BSE and NSE on November 26.