CAPILLARYBSECapillary Technologies India LtdMediumNeutral
Announced Wed, 6 May · 19:10 IST

Monitoring Agency Report for the quarter ended March 31, 2026.

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CAPILLARY · price

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AI summary

Capillary Technologies submitted its Q4 FY2026 monitoring agency report for the Rs 3,450 million IPO completed in November 2025. The company has utilized only Rs 188.43 million (5.5%) of gross proceeds as of March 31, 2026. Of the net proceeds of Rs 3,229.08 million, Rs 3,261.57 million remains unutilized and is parked in fixed deposits with banks (Kotak, RBL, HDFC, HSBC). No funds have been deployed toward the main objects—cloud infrastructure (Rs 1,430 million), R&D (Rs 715.81 million), or computer systems (Rs 103.42 million)—due to the company's reimbursement-based expenditure model. Only Rs 0.13 million was used for inorganic growth/GCP purposes (bank charges), while Rs 188.30 million was paid toward issue expenses. The monitoring agency reports no deviations from the offer document disclosures.

Likely market impact

The minimal utilization of IPO proceeds suggests the company is taking a cautious approach to deployment. The large unutilized balance parked in FDs provides flexibility but raises questions about the pace of execution on stated growth plans. No red flags exist—utilization is aligned with disclosures, and the reimbursement model explains the delay.