Excelsoft Technologies Files for ₹700 Crore IPO with SEBI

Excelsoft Technologies Ltd., a vertical SaaS company focused on the learning and assessment market, has filed its draft red herring prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). The company plans to raise ₹700 crore, which includes a fresh issue of ₹210 crore and an offer for sale (OFS) of ₹490 crore by its promoters, Pedanta Technologies and Dhananjaya Sudhanva. 

Anand Rathi Advisors is managing the IPO, and the shares are expected to be listed on BSE and NSE.

Use of IPO Proceeds

The proceeds from the fresh issue will be used for:

• Purchasing land and constructing a new building in Mysore.
• Upgrading the company’s IT infrastructure, including software, hardware, and network systems.
• Upgrading the external electrical systems at its existing facility.
• General corporate purposes.

Pre-IPO Placement Consideration

Excelsoft may explore a pre-IPO placement of up to ₹270 crore. If this takes place, the size of the fresh issue and/or the OFS will be reduced accordingly.

Company Overview

Excelsoft Technologies has been in operation for over 20 years, providing technology-based solutions in the learning and assessment space. As of December 31, 2024, it serves 71 clients across 17 countries, including the USA, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE, and Canada.

Some of its clients include Pearson Education, Inc., AQA Education, Colleges of Excellence, NxGen Asia PTE LTD, Ascend Learning LLC, and Brigham Young University-IDAHO.

Financial Performance

In FY24, Excelsoft reported revenue from operations of ₹198.3 crore, with a profit after tax (PAT) of ₹12.75 crore. According to its draft papers, there are no listed companies in India with a business model or segment contribution directly comparable to Excelsoft.

Conclusion

Overall, the IPO will help provide Excelsoft Technologies with capital to support its expansion and operational upgrades, while offering existing shareholders an opportunity to divest part of their holdings.

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