IPO Overview
Excelsoft Technologies Limited is launching its mainboard IPO with a total issue size of ₹500 crores, comprising a fresh issue of ₹180 crores and an offer for sale (OFS) of ₹320 crores. The company operates as a global vertical SaaS provider specializing in learning and assessment solutions.
Key IPO Details at a Glance:
- Issue Opens: November 19, 2025
- Issue Closes: November 21, 2025
- Price Band: ₹114 – ₹120 per share
- Lot Size: 125 shares
- Face Value: ₹10 per share
- Listing Exchanges: BSE & NSE
- Tentative Listing: November 26, 2025
Investment Requirements
The minimum investment required varies by investor category:
- Retail Investors: 1 lot (125 shares) = ₹15,000
- Maximum Retail Application: 13 lots (1,625 shares) = ₹1,95,000
- Small HNI (sHNI): Minimum 14 lots = ₹2,10,000
- Big HNI (bHNI): Minimum 67 lots = ₹10,05,000
Issue Structure & Reservation
The net offer will be distributed as follows:
- QIB (Qualified Institutional Buyers): Up to 50%
- Retail Individual Investors: Minimum 35%
- Non-Institutional Investors (NII): Minimum 15%
Business Model & Operations
Founded in 2000, Excelsoft Technologies has established itself in the edtech space with AI-powered learning and assessment platforms. The company’s product portfolio includes:
Assessment & Proctoring:
- SARAS e-Assessments
- EasyProctor (Online proctoring solution)
Learning Management Systems:
- SARAS LMS
- EnablED LXP
- OpenPage (Digital eBook platform)
- CollegeSparc
- LearnActiv K12
The company serves over 200 organizations globally, impacting more than 30 million learners across India, Malaysia, Singapore, UK, and USA. Its client roster includes prestigious names like Pearson Education, AQA Education, Brigham Young University, and Ascend Learning LLC.
Financial Performance Analysis
Revenue Trajectory:
The company demonstrated solid top-line growth with total income rising from ₹197.97 crores in FY23 to ₹248.80 crores in FY25, marking a 24% YoY increase between FY24 and FY25.
Profitability Metrics:
However, the profitability story reveals volatility. PAT stood at ₹22.41 crores in FY23, dropped sharply to ₹12.75 crores in FY24, before rebounding strongly to ₹34.69 crores in FY25 (172% YoY growth).
Key Financial Ratios (as of March 31, 2025):
- ROE: 10.38%
- ROCE: 16.11%
- PAT Margin: 14.87%
- EBITDA Margin: 31.40%
- Debt-to-Equity: 0.05 (indicating minimal leverage)
Debt Position:
The company has successfully reduced borrowings from ₹118.09 crores (FY23) to ₹26.59 crores (FY25), demonstrating improved financial discipline.
Valuation Assessment
Pre-Issue Metrics:
- EPS: ₹3.47
- P/E Ratio: 34.62x
Post-Issue Metrics:
- EPS: ₹2.09
- P/E Ratio: 57.46x
- Price-to-Book Value: 3.23x
- Market Cap: ₹1,381.01 crores
The significant dilution in EPS from ₹3.47 to ₹2.09 post-issue is concerning. The post-issue P/E of 57.46x appears steep for a company operating in the competitive edtech sector.
Promoter Holding
The promoter group includes Pedanta Technologies Private Limited, Dhananjaya Sudhanva, Lajwanti Sudhanva, and Shruthi Sudhanva.
- Pre-Issue Holding: 94.60%
- Post-Issue Holding: 59.09%
- Dilution: 35.51%
The substantial promoter dilution through OFS indicates significant stake sale, which could be viewed as a red flag by conservative investors.
Use of Proceeds
The fresh issue proceeds of ₹180 crores will be utilized for:
- Land Purchase & Building Construction at Mysore: ₹71.97 crores
- Facility Upgradation at existing Mysore location: ₹39.51 crores
- IT Infrastructure Enhancement: ₹54.64 crores
- General Corporate Purposes: Balance amount
Notably, ₹320 crores from OFS will go directly to selling shareholders, providing no capital to the company.
Competitive Landscape
The edtech and learning management system space is highly fragmented and competitive. While Excelsoft has established relationships with marquee clients, it faces competition from both global SaaS players and regional edtech companies.
Strengths:
- Two-decade operational track record
- Strong client retention with global marquee names
- Diversified product portfolio across learning and assessment
- Low debt levels
- Improving margins
Concerns:
- Volatile profitability (FY24 PAT decline)
- Aggressive valuations post-issue
- Significant promoter stake dilution
- Large OFS component (64% of total issue)
- Competitive and fragmented market
Expert Recommendation Summary
According to available broker reviews:
- Subscribe: 0 brokers
- Neutral: 2 brokers
- Avoid: 0 brokers
Member recommendations show 1 subscribe rating with no neutral or avoid recommendations.
Investment Strategy
For Long-term Investors:
The company operates in a growing sector with decent fundamentals and established client relationships. However, the aggressive pricing and significant promoter selling warrant caution. Long-term investors with high risk appetite and thorough understanding of the edtech space may consider allocation.
For Short-term/Listing Gains:
Given the neutral broker recommendations and premium valuations, listing gains appear uncertain. The large issue size and OFS component could impact demand-supply dynamics.
Risk Profile: High
Final Verdict
Excelsoft Technologies operates a legitimate business with real clients and operational history. However, the combination of aggressive valuations (57x P/E post-issue), substantial promoter selling (35% dilution), and volatile profitability makes this IPO suitable only for well-informed investors with high risk tolerance.
Conservative investors and those seeking stable returns should approach with caution or consider waiting for listing price stabilization before entry.
This analysis is for educational purposes only and should not be construed as investment advice. Investors are advised to conduct their own research and consult with financial advisors before making investment decisions.
Source – SEBI Public Issues
