Key Points:
- The Excelsoft Technologies IPO was subscribed 7.97 times on the final day, showing strong investor demand.
- Shares are set to list on Nov. 26, with an estimated price of ₹134, valuing the company at ₹1,380 crore.
- Excelsoft provides tech-based learning solutions, but high valuation and client concentration pose risks.
The Excelsoft Technologies IPO was subscribed 7.97 times by the afternoon of Nov. 21, the final day of bidding. The three-day issue opened on Nov. 19 with a price band of ₹114–120 per share. The company expects to list its shares on the BSE and NSE on Nov. 26.
Subscription rises on last day
Data from the exchanges showed that investors bid for 21,14,24,875 shares against 3,07,01,754 shares available by 17:00 IST. The retail portion was subscribed 5.92 times, while non-institutional investors (NII) bid 18.20 times. The qualified institutional buyers (QIB) portion received a 9 percent subscription.
Excelsoft Technologies set aside a maximum of 50 percent of the issue for QIBs, at least 15 percent for NIIs, and a minimum of 35 percent for retail investors. At the upper end of the price band, the offering implies a valuation of about ₹1,380 crore.
Key dates and grey market trend
Allotments for the Excelsoft Technologies IPO finalise share allotments on Nov. 24. Refunds will be processed on Nov. 25, followed by credit of shares to demat accounts on the same day. Trading is scheduled to begin on Nov. 26.
The grey market premium (GMP) stood at ₹14 on Nov. 21. Based on this premium and the upper price band of ₹120, the estimated listing price is ₹134 per share, indicating an 11.67 percent premium. Analysts noted that the GMP has declined over the past 10 sessions, ranging from a high of ₹30 to a low of ₹0.
Grey market activity reflects the informal premium investors are willing to pay above the issue price, although it does not guarantee actual listing performance.
Company background and business
Excelsoft Technologies has operated for more than twenty years, providing technology-based learning and assessment solutions. The company serves global enterprise clients through long-term contracts. Its client list includes Pearson Education, AQA Education, NxGen Asia PTE Ltd, Ascend Learning LLC, Brigham Young University–Idaho, Surala Net Co. Ltd, and several professional education bodies.
The firm plans to raise ₹180 crore through a fresh issue of shares. Promoter Pedanta Technologies will sell up to ₹320 crore worth of shares through an offer-for-sale. According to draft documents filed with the Securities and Exchange Board of India (SEBI) in February, the total size of the offer was reduced from the earlier proposed ₹700 crore. SEBI approved the revised documents in July.
Promoters currently hold 94.60 percent of the company. The remaining 5.4 percent is owned by the public. Anand Rathi Advisors is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar for the issue.
Brokerage views and valuation concerns
Brokerages offered mixed views on the Excelsoft Technologies IPO due to its valuation. Canara Bank Securities noted that the company is priced at about 39 times its FY25 price-to-earnings ratio and roughly 57 times its annualised Q1FY26 earnings. The brokerage said the valuation exceeds those of industry peers and will need strong execution to justify the premium.
The firm said Excelsoft maintains proprietary technology and long-term client relationships and benefits from growth in digital learning. However, it expects short-term performance to remain subdued. It recommended the IPO mainly for long-term investors with a high risk appetite seeking exposure to scalable education technology platforms with consistent EBITDA and steady cash flows.
Swastika Investmart cited strong financial performance, including a roughly 172 percent increase in profit after tax (PAT) in FY25. It also highlighted risks from the company’s dependence on the Pearson Education Group, which accounts for about 59 percent of revenue. The brokerage said the valuation appears steep at a price-to-earnings ratio of around 35 and assigned a neutral view, expecting only a modest listing gain.
Outlook ahead of listing
Investor interest in the Excelsoft Technologies IPO remained strong through the bidding period, supported by participation from all categories. However, analysts said the final listing performance will depend on broader market sentiment, the company’s ability to diversify its client base, and its delivery on growth forecasts.
Excelsoft Technologies will now move to the allotment stage on Nov. 24, with listing expected two days later. The company’s debut will provide the first indication of whether investor enthusiasm aligns with its premium valuation.
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