Excelsoft Technologies IPO Opens on November 19: ₹500 Crore Raise, GMP Surges ~12.5%

Excelsoft Technologies, a global vertical-SaaS company specializing in learning, assessment, and digital education infrastructure, has officially launched its much-anticipated ₹500 crore initial public offering (IPO) today. The three-day subscription window runs from November 19 to November 21, 2025.

IPO Structure & Key Details

The issue is structured as a combination of a fresh issue of ₹180 crore and an Offer for Sale (OFS) amounting to ₹320 crore. The price band has been fixed between ₹114 and ₹120 per share, with a lot size of 125 shares. The company’s equity shares have a face value of ₹10 each.

Allotment is expected to be finalized around November 24, 2025, with listing anticipated on the BSE and NSE on November 26, 2025.

Grey Market Premium (GMP) Trend

In the grey-market, Excelsoft’s unlisted shares have been trading at roughly ₹136, indicating a GMP of around 13.3% above the upper band. This strong premium suggests solid investor appetite, at least in the unofficial market.

Business Model & Market Position

Excelsoft is a vertical SaaS provider focused on the education and assessment sector. Its product portfolio includes platforms for e-assessment, remote proctoring, learning management, content creation, and AI-driven analytics. The company is active in 19 countries and serves more than 75 global clients, including major names such as Pearson Education, AQA Education, and Ascend Learning.

Financially, Excelsoft reported strong growth in FY 2025, with a PAT of ₹34.69 crore, a surge of ~172% year-on-year, according to its red herring prospectus. Analysts highlight its healthy margins, recurring revenue model, and long-term client contracts as key strengths.

Use of IPO Proceeds

The net proceeds from the fresh issue will be deployed across several key areas:

·         Land acquisition and construction of a new facility in Mysore.

·         Upgrading external electrical systems at its existing Mysore campus. Modernizing its IT infrastructure, including software, hardware, and network services.

·         Remaining funds will be used for general corporate purposes.

Strengths & Risks: What Analysts Are Saying

Strengths:

·         Domain focus: As a vertical SaaS firm in EdTech and assessment, Excelsoft is well-positioned to capitalize on long-term growth in remote and high-stakes testing.

·         Recurring revenue: Its business model combines subscription-based SaaS platforms with implementation and service revenues, boosting stickiness.

·         Global footprint: With clients in North America, Europe, and Asia, the company has strong diversification and export potential. Financial momentum: High profitability and margin expansion in recent years give it a solid financial foundation.

Risks:

·         Client Concentration: A significant portion of revenue comes from one major client — Pearson Education Group — which could be a vulnerability if the relationship weakens. Regulatory Risk: Operating across geographies exposes the company to currency fluctuations and compliance complexities. Valuation Stretch: At the upper price band, valuations could appear aggressive relative to its growth rate, according to some brokerages. Contingent Liabilities: Excelsoft has extended a large corporate guarantee (₹3,000 million) for its promoter’s non-convertible debentures, raising financial risk. Brokerage Views & Investor Sentiment

·         SBI Securities: Maintains a “Neutral” rating, noting that while Excelsoft’s profit growth is strong, revenue growth has been modest.

·         Reliance Securities: Gives a “Subscribe” rating, citing Excelsoft’s global foothold, domain specialization, and investment in infrastructure and AI as strong drivers.