About the Company
Excelsoft Technologies Ltd (ETL) is a global software company founded in 2000 that helps schools, universities, companies, and governments teach and test their students or employees. They make software products that handle online learning, testing, and grading for millions of students worldwide. Think of them as creating the “digital classroom brain”—software that lets teachers create tests, students take exams online with AI-powered proctoring (monitoring), tracks progress, and provides personalized learning paths. Their main products are SARAS (learning system), EnablED (digital textbook), and OpenPage (interactive eBooks). They serve 99 clients globally including universities, publishers, governments, and Fortune 500 companies.
READ FULL DRHP HERE:|SEBI DRHP EXCELSOFT|
IPO Details Table
Detail Explanation Data
IPO Opening Date Buy shares from 19 Nov 2025
IPO Closing Date Last date to apply 21 Nov 2025
Price Band Price range for shares ₹114 – ₹120
Lot Size Min. shares to buy 125 shares (~₹15,000 at upper band)
Total Issue Size Max money raised ₹500 crore
Fresh Issue New shares, money goes to company ₹180 crore (1.50 crore shares)
Offer for Sale (OFS) Old owners sell shares ₹320 crore (2.67 crore shares)
Total Shares Offered How many shares 4.16 crore shares
Listing Date Shares start trading 26 Nov 2025
Face Value Company unit value ₹10 per share
Registrar Share allocation handler KFin Technologies Limited KFintech
Book Managers IPO arrangers Nomura, Kotak Mahindra Capital, Axis Capital
Registrar (share allocation handler)- KFin Technologies Limited | KFintech
What Will the IPO Money Be Used For?
| Purpose | Amount (₹ Cr) | Explanation |
|---|---|---|
| Research & Development - AI/ML products | 92.16 | Develop new AI learning products, smart proctoring |
| Cloud Infrastructure & Servers | 65.68 | Build secure data centers for global operations |
| Marketing & Brand Building | 69.66 | Awareness campaigns, global expansion |
| IT Infrastructure Upgrade | 66.35 | Better hardware, software, network security |
| General Corporate Purposes | Remaining | Day-to-day business needs |
Total Fresh Issue: ₹180 crore going to company for growth
IPO Timeline
| Event | Date |
|---|---|
| IPO Opens | 19 Nov 2025 |
| IPO Closes | 21 Nov 2025 (5 PM) |
| Allotment Date | 24 Nov 2025 |
| Refunds Issued | 25 Nov 2025 |
| Shares to Demat | 25 Nov 2025 |
| Listing Date | 26 Nov 2025 |
Business Model & Revenue Structure
How Excelsoft Makes Money:
- Software License/Subscription Fees (Main Revenue)
- Schools and companies pay yearly or monthly fees to use SARAS learning software
- Price: Depends on number of students/users and features
- Examples: A university pays ₹10-50 lakh/year; an online testing platform pays ₹50 lakh-₹1 crore/year
- Perpetual Licenses
- Some clients buy one-time licenses instead of yearly subscriptions
- Higher upfront payment but customer keeps software forever
- Implementation Services
- Excelsoft helps set up and customize software for new clients
- One-time charges for integration and training
- Support & Maintenance Services
- Yearly charges for technical support, updates, maintenance
Revenue by Product/Service (FY25):
- Assessment Products: ~40% of revenue (test/exam platforms)
- Learning Platforms: ~35% of revenue (SARAS LMS, EnablED)
- Other Services: ~25% of revenue (support, consulting)
Geographic Revenue Split:
- International (Overseas): Majority of revenue from USA, Europe, Australia
- Domestic (India): Growing portion
Key Financial Metrics (Simple Numbers)
| Metric | FY23 | FY24 | FY25 | Q1 FY26 (Jun 2025) | What It Means |
|---|---|---|---|---|---|
| Revenue | ₹195 Cr | ₹200 Cr | ₹248 Cr | ₹60 Cr (Q1) | Growing slowly 9% annually |
| Profit After Tax | ₹22 Cr | ₹12 Cr | ₹34 Cr | ₹6 Cr | Profit jumped 172% in FY25 |
| EBITDA | ₹68 Cr | ₹54 Cr | ₹73 Cr | ₹10 Cr | Operating profit stable |
| EBITDA Margin | 35% | 27% | 31% | 18%* | High but declining* |
| PAT Margin | 11.5% | 6.4% | 14.9% | 10.8%* | Each ₹100 sales = ₹15 profit |
| ROE | 9.5% | 3.8% | 10.38% | 1.61%* | Decent shareholder returns |
| ROCE | 16.3% | 14.3% | 16.11% | 2.1%* | Decent capital efficiency |
| Debt-to-Equity | — | — | 0.07 | 0.10 | Very low debt, safe |
| Employee Cost | ~₹60 Cr (est FY25) | ~₹70 Cr (est FY24) | Growth | ~₹17 Cr (Q1) | About 24-27% of revenue |
| Net Worth | ₹278 Cr | ₹297 Cr | ₹371 Cr | ₹376 Cr | Strong balance sheet |
| Clients Count | 93 | 98 | 99 | — | Slow client growth |
*Q1 figures not annualized
Key Points:
- Revenue Growth Muted: Only 9% CAGR—slower than industry
- Profit Recovery: After loss-making FY24, profit rebounded strongly in FY25
- Expensive Valuation: P/E of 39.8x-57.46x is high for 9% growth
- Strong Balance Sheet: Low debt, good profitability
- Stable Margins: 31% EBITDA margin is respectable for software
- Employee Cost High: 24-27% of revenue goes to engineers (software engineers are costly)
Cost of Acquisition – For Promoters
- Excelsoft started from scratch in 2000 by Dhananjaya Haridas, Prabhaker Rao, and others
- Initial investment: Estimated ₹10-20 crore in early 2000s
- No major acquisitions for technology—built organically
- Current post-IPO valuation: ₹1,381 crore market cap at upper price band
- Promoter Gain: Approximately 70-140x returns on original investment over 25 years
OFS Component: Promoters and early investors selling ₹320 crore worth of shares (partial exit to book profits)
Industry Analysis – EdTech & Vertical SaaS
Massive Growth Opportunity:
| Market | Size | Growth Rate |
|---|---|---|
| Global Vertical SaaS | $200+ billion | Growing 25-30% annually |
| Learning & Assessment SaaS | $50-60 billion | Growing 18-22% annually |
| India’s EdTech Market | $6-8 billion | Growing 30%+ annually |
| Global Online Proctoring | $3-5 billion | Growing 40%+ annually |
Excelsoft’s Position:
- Among top global providers in Learning & Assessment SaaS
- Serves 99 enterprise clients globally
- ~1.82+ million students using their platforms
- Platform usage across 47+ countries
Growth & Strengths
Major Strengths:
- Recurring Revenue Model
- Subscriptions = predictable cash flow
- Customers stay for 5-10+ years once they adopt
- Growing customer base slowly but steadily
- AI & ML Integration
- Building proprietary AI models for smart proctoring
- AI recommendations for personalized learning
- Future-proof technology
- Global Presence
- Serves 47 countries, not just India
- Hard-to-replace solutions for universities
- Locked-in customers
- Niche Expertise
- Deep knowledge of learning & assessment sector
- Custom products tailored to education
- Hard to compete with
- Strong Balance Sheet
- Low debt (0.07 D/E ratio)
- ₹248 crore cash in hand
- Can fund growth organically
- High Profitability
- 31% EBITDA margins (software benchmark is 20-25%)
- 15% PAT margin
- Efficient operations
Key Risks & Concerns
Major Risks:
| Risk | Why It Matters | Impact |
|---|---|---|
| Slow Revenue Growth | Only 9% CAGR in 2 years—tech sector grows 20%+ | Top line stalling, needs acceleration |
| Expensive Valuation | P/E of 39.8x-57.46x vs peers at 20-25x | Stock might fall if growth disappoints |
| High Employee Costs | 24-27% of revenue—if talent leaves, quality drops | Profit margin pressure |
| Slow Client Growth | Only 99 clients—need to add more customers | Heavy dependence on few large clients |
| FY24 Profit Collapse | PAT fell 43% (₹22 Cr to ₹12 Cr) in FY24 | Shows business is volatile |
| Competition Risk | Competes with Blackbaud, Schoology, Canvas | Global giants have more resources |
| Customer Concentration | Top clients likely drive 40-50% of revenue | Loss of 1-2 large clients = crisis |
| Exchange Rate Risk | 50%+ revenue from abroad | If rupee strengthens, profits fall |
Valuation – Is It Expensive?
| Metric | Excelsoft | Similar SaaS Companies | Comment |
|---|---|---|---|
| P/E Ratio | 39.8x (FY25) | 25-35x | EXPENSIVE — higher than peers |
| EV/Revenue | 5.8x | 3-5x | Premium valuation |
| Price/Book Value | 3.23x | 2-3x | Slightly expensive |
| Debt/Equity | 0.07 | — | Very safe |
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.