Excelsoft Technologies, a leading player in technology-driven education and assessment solutions, is gearing up to tap into the capital markets with plans to raise as much as ₹700 crore through an initial public offering (IPO). This upcoming offering comprises a fresh equity share issue valued at ₹210 crore and a substantial offer-for-sale (OFS) totaling ₹490 crore, as detailed in the company’s draft red herring prospectus filed on February 28.
Details of the Offer-for-Sale
In the OFS segment, major stakeholders Pedanta Technologies and Dhananjaya Sudhanva are set to divest shares worth ₹340 crore and ₹150 crore, respectively. Moreover, the Karnataka-based Software as a Service (SaaS) firm is exploring the possibility of a pre-IPO funding round that could generate an additional ₹270 crore. Should this funding round be executed, the total IPO size, including both the new issuance and the OFS, will see adjustments as per the company’s strategy.
Utilizing Proceeds for Growth
Excelsoft has outlined a robust plan for the capital raised through the fresh issuance. Key initiatives include:
- Land Acquisition: Securing new land for expansion.
- Facility Construction: Building a state-of-the-art facility.
- Infrastructure Upgrades: Enhancing external electrical systems at their existing site in Mysore, Karnataka.
- IT Enhancements: Investing in improved IT infrastructure.
- Corporate Growth: Allocating funds for general corporate purposes.
Global Reach and Unique Market Position
Excelsoft operates in 17 countries and services 71 clients, standing out in the market with no directly comparable entities listed. However, the company recently reported a significant decline in net profit for FY24, dropping to ₹12.75 crore from ₹22.4 crore the previous year. On a brighter note, revenue experienced a slight uptick, rising to ₹198.3 crore from ₹195.1 crore.
In summary, Excelsoft Technologies is poised to make a notable entrance into the capital markets, with strategic plans for expansion and a commitment to enhancing their operational capabilities. Keep an eye on this promising company as they navigate the IPO landscape!
