Excelsoft Technologies Limited, a vertical software-as-a-service (SaaS) company focused on the learning and assessment market, has filed draft papers with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise `700 Crore through an initial public offering (IPO).
The proposed IPO of the Karnataka-based company is a combination of a fresh issue of shares valued `210 Crore and an offer for sale (OFS) of shares worth `490 Crore by the promoters - Pedanta Technologies and Dhananjaya Sudhanva, according to the draft red herring prospectus (DRHP).
The company may consider mobilising up to `270 Crore in pre-IPO round.
"If the pre-IPO placement is undertaken, then the amount raised from the pre-IPO placement will be reduced from the fresh offer size or the Offer for Sale portion," the company said in the draft papers filed on Friday.
The company has proposed to utilise the proceeds of the fresh issue towards purchase of land and construction of a new building and for upgradation and external electrical systems of its existing facility in Mysore, funding upgradation of the company's IT infrastructure and for general corporate purposes.
With over two decades of experience, Excelsoft provides technology-based solutions across diverse learning and assessment segments through long-term contracts with enterprise clients worldwide.
As on December 31, 2024, it caters to 71 clients spread across 17 countries, including the US, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE and Canada.
Some of its prominent clients are Pearson Education, Inc, AQA Education, Colleges of Excellence, NxGen Asia PTE LTD, Pearson Professional Assessments Ltd, Sedtech for Technology Education and Learning WLL, Ascend Learning LLC, Brigham Young University- IDAHO, Training Qualifications UK, Surala Net Co Ltd, Excel Public School and The Chartered Quality Institute.
On the financial front, Excelsoft reported a revenue from operations at `198.3 Crore in fiscal year 24, with a profit after tax (PAT) of `12.75 Crore.
As per the draft papers, there are no listed companies or peers in India that have business composition and segment contribution similar to it.
According to an Arizton report, the global SaaS market has seen rapid growth, with vertical SaaS emerging as a dominant trend that promises specialised, industry-tailored solutions. This shift has positioned vertical SaaS to grow at an even faster pace than general SaaS, with estimates suggesting that vertical SaaS could account for nearly 50 per cent of the SaaS market by 2030.
Anand Rathi Advisors is the book running lead manager to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.
