Excelsoft Technologies gets SEBI nod for ₹700cr IPO
What's the story
Karnataka-based Excelsoft Technologies has received the green light from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company had filed its draft papers with SEBI on February 28, 2024. The upcoming IPO will see the company raising ₹700 crore from the Indian stock market through a fresh issue and an offer for sale (OFS) component.
Company profile
Company serves 71 clients across 17 countries
Founded in 2000, Excelsoft Technologies is a global vertical SaaS company that provides technology-based solutions across various learning and assessment segments. The company serves 71 clients across 17 countries, including the US, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE, and Canada. Some of its top clients include Pearson Education Inc., AQA Education, Colleges of Excellence, NxGen Asia PTE LTD, Pearson Professional Assessments Limited, Sedtech for Technology Education & Learning WLL, and Ascend Learning LLC.
Fund allocation
Fresh issue worth ₹210 crore
The upcoming IPO will consist of a fresh issue of shares worth ₹210 crore and an OFS component worth up to ₹490 crore. The promoters of the company, Pedanta Technologies Private Limited and Dhananjaya Sudhanva, will be divesting their stake in the company through this public offering. Excelsoft Technologies plans to use the funds raised from this public issue for capital expenditures such as land acquisition, building construction, and external electrical system upgrade at its Mysore facility.
Additional fund utilization
Plans to upgrade IT infrastructure
Along with the capital expenditures, Excelsoft Technologies also plans to use the IPO proceeds for upgrading its IT infrastructure. The remaining funds from this public offering will be used for general corporate purposes. The book-running lead manager of the public issue is Anand Rathi Advisors Limited, while MUFG Intime India Private Limited (Link Intime) will act as the offer's registrar.