This SaaS company wants to raise ₹700 crore via IPO
What's the story
Global vertical SaaS firm Excelsoft Technologies has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
The company plans to raise ₹700 crore via an initial public offering (IPO).
According to the DRHP, the Karnataka-based firm's proposed IPO includes a fresh equity issue of up to ₹210 crore and an offer for sale (OFS) of up to ₹490 crore.
Fund allocation
How the firm plans to use IPO proceeds
Excelsoft Technologies plans to use the net proceeds from its fresh issue for capital expenditure.
The funds will be used for purchasing land and constructing a new building and upgrading external electrical systems of its existing facility in Mysuru.
The company also intends to enhance its IT infrastructure including software, hardware, communication & network services with these funds.
General corporate purposes are also covered under the fund allocation plan.
Pre-IPO placement
Excelsoft Technologies may consider pre-IPO placement
Excelsoft Technologies is also considering a pre-IPO placement.
This could be in the form of issuing additional equity shares worth up to ₹30 crore or a secondary sale of equity shares by selling shareholders worth ₹240 crore.
The company may also choose a mix of both before filing the Red Herring Prospectus with the ROC.
If the pre-IPO placement happens, it will adjust the size of its fresh issue accordingly.
Company overview
A glimpse into the company's profile
Excelsoft Technologies boasts over two decades of experience in offering technology-based solutions across different learning and assessment segments.
The firm has long-term contracts with enterprise clients globally. As of December 31, 2024, it served 71 clients across 17 countries including the USA, UK, Singapore, Australia, Japan among others.
Some of its prominent clients include Pearson Education Inc., AQA Education, NxGen Asia PTE LTD., Ascend Learning LLC and Brigham Young University - IDAHO.