Excelsoft Technologies IPO Launch: Rs 500 Crore Dream on Nov 19! Will it Soar?

Excelsoft Technologies, a Karnataka-based Software-as-a-Service (SaaS) company specializing in learning and assessment solutions, is set to launch its Initial Public Offering (IPO) on November 19, aiming to raise Rs 500 crore. The IPO consists of a fresh issue of Rs 180 crore and an offer-for-sale (OFS) component where promoters will sell shares worth up to Rs 320 crore. The company had previously planned a larger Rs 700 crore IPO, but the size has been revised. The capital markets regulator approved the IPO papers in July. The anchor book will open on November 18, and public subscription will be open from November 19 to November 21. The shares are expected to list on the BSE and NSE on November 26. Proceeds from the fresh issue will primarily be used for constructing a new building at its Mysore property (Rs 61.7 crore), upgrading the existing Mysore facility (Rs 39.5 crore), enhancing its IT infrastructure (Rs 54.6 crore), and for general corporate purposes. For the quarter ended June 2025, Excelsoft reported a profit of Rs 6 crore on revenue of Rs 55.7 crore. In fiscal 2025, the company saw a significant 172% profit growth to Rs 34.7 crore from Rs 12.8 crore, with revenue rising 17.6% to Rs 233.3 crore. Anand Rathi Advisors is the sole book-running lead manager for the IPO.

Impact This IPO will bring a new tech stock to the public markets, potentially increasing investor interest in the EdTech/SaaS sector. The use of funds for expansion and upgrades could lead to future growth for Excelsoft Technologies, impacting its stock performance post-listing. Rating: 6/10

Difficult terms: SaaS: Software as a Service. A software distribution model where a third-party provider hosts applications and makes them available to customers over the internet. IPO: Initial Public Offering. The process by which a private company can go public by selling its shares to the public. Offer-for-sale (OFS): A way for existing shareholders to sell their shares to new investors. Anchor book: A portion of the IPO reserved for institutional investors who commit to buying shares before the public offering opens. Book running lead manager: The financial institution responsible for managing the IPO process.