Excelsoft Technologies IPO – A Deep Dive
Excelsoft Technologies Ltd, a Karnataka-based global vertical SaaS company specialising in learning & assessment solutions, is gearing up for its initial public offering (IPO). The company has announced an issue size of ₹500 crore, which will open for subscription on 19 November 2025 and close on 21 November 2025.
The IPO comprises a fresh issue of equity shares aggregating up to ₹180 crore and an offer for sale (OFS) of shares by the promoter for up to ₹320 crore.
Company & Business Overview
Excelsoft Technologies Ltd is a specialist provider of cloud-based learning and assessment solutions.
With over two decades of experience, the company serves enterprise clients worldwide across the learning & assessment lifecycle—covering digital learning platforms, e-assessment, remote proctoring, content solutions and services.
Its product portfolio includes platforms designed for publishers, corporates, certification bodies, and institutions. The company emphasises its presence in international markets and long-term contracts with large clients.
IPO Details
- Issue size: ₹500 crore total.
- Fresh issue: ~₹180 crore.
- Offer for sale (OFS): ~₹320 crore (promoter share sale).
- Issue window: 19 Nov 2025 to 21 Nov 2025.
- Lot size, price band: The tentative price band is ₹114-120 per share for a minimum lot of 125 shares (approx ₹15,000) as indicated by some sources.
- Listing: The company proposes to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
Use of Proceeds
The funds from the fresh issue portion will be used for:
- Purchase of land and construction of a new building at the Mysore facility (~₹61.76 crore)
- Upgradation of external electrical systems of the existing Mysore facility (~₹39.51 crore)
- Upgradation of IT infrastructure (software, hardware, communications) (~₹54.63 crore)
- Balance towards general corporate purposes.
Financial Performance & Metrics
Some key recent figures:
- For FY25, revenue from operations stood at about ₹233.29 crore and profit after tax (PAT) at ~₹34.69 crore.
- Growth in profit has been significant (“profit grew 172 % year-on-year” as per one source) though base numbers are small.
- Pre-IPO promoter shareholding is ~94.60 %.
Strengths & Opportunities
- Focused niche: As a vertical SaaS company in the learning & assessment domain, Excelsoft positions itself in a specialty segment rather than generic software.
- Global footprint: Serving multiple countries and enterprise clients gives the company international exposure.
- Growth potential: With increasing digitalization of education, certification and assessments, there is scope for expansion.
- Use of proceeds: Investing in infrastructure and IT may further support scaling.
Risks & Considerations
- Concentration risk: A significant part of revenue comes from a few large customers; loss or reduction of business from these could impact financials.
- Competitive environment: The SaaS and ed-tech/assessment domain is rapidly evolving with new entrants, technology disruption and price pressures.
- Macro / market risk: IPO markets and valuations are subject to sentiment, interest‐rates, regulatory changes, and listing day performance.
- Execution risk: Use of proceeds for new building and infrastructure may require time and cost control.
Valuation & Market Perception
The IPO is priced (tentatively) around ₹114-120 per share. With the reported PAT of ~₹34.69 crore and number of shares (not publicly detailed in all sources) the implied valuation suggests investors are betting on future growth rather than only current earnings. Broker commentary on listing day, demand, subscription levels and grey-market premium (GMP) will be important for retail investors to monitor.
How to Participate & What to Check
- Investors should check the final price band once declared, the minimum lot size, and the allocation category (Retail, NII, QIB).
- Review the RHP/DRHP (red herring prospectus) to understand risks, peer comparators, promoter holdings, and lock-in provisions.
- Examine the listing date, and check how the company’s business aligns with future trends (digital assessments, AI in learning, etc.).
- Decide whether this IPO fits your investment objective (whether you are looking for listing gains vs long-term holding).
- Keep in mind IPOs are typically more volatile in listing, and past performance is no guarantee of future returns.
Conclusion
With its upcoming IPO opening on 19 November 2025, Excelsoft Technologies Ltd presents an opportunity for investors to ride the growth story of a niche global SaaS player in the learning & assessment domain. While there are clear strengths in business model and growth potential, investors should weigh those against execution risks, valuation expectations and broader market conditions. Participation in this IPO could suit those who believe in the secular trend of digital learning and assessment globally and are willing to embrace associated risks.
