Excelsoft Technologies IPO Day 3 Highlights: Issue booked over 43; GMP signals 12% listing pop

Excelsoft Technologies IPO was subscribed 43.19x on the final day of the bidding. Here's how different quotas were booked:

QIB: 47.55x

NII: 101.69x

Retail: 15.62x

At the upper band, the IPO implies a valuation of ~32–35× FY25 earnings and roughly 7.5–8× EV/EBITDA, placing it at a premium to several listed IT-services and mid-cap SaaS peers. For context, MPS Ltd trades at lower P/E multiples with a much higher ~31% ROE, and Ksolves commands a premium largely due to extraordinary ~150% ROE, while even niche SaaS players typically trade in the 18–28× band depending on growth durability. Excelsoft’s premium rests on its global footprint—76 enterprise clients across 19 countries, largely in assessment, test delivery, and e-learning—as well as its near-zero leverage (D/E ~0.05x) and sticky multi-year contracts.

The risks, however, are material: client concentration is high, with revenue heavily skewed toward one large global account; scale remains moderate; and the company operates in a segment where contract renewal cycles, regulatory changes in education, and pricing competition can influence margins quickly.

My view: Excelsoft offers a credible, cash-generative SaaS story with international relevance, but the valuation demands flawless execution: deeper client diversification, sustained margin resilience, and ROE expansion. For long-term investors, it may fit as a selective SaaS allocation; for conservative investors, the limited valuation buffer suggests waiting for earnings to catch up.

As per the Arizton Report, the global assessment and proctoring market was valued at $10.83 billion in 2024 and is expected to reach $21.26 billion by 2030, growing at a CAGR of 11.90%. The market has observed significant growth in recent years due to advances in education technology, the rise of remote learning, and the need for secure and scalable solutions for conducting assessments.

Geographically, the market exhibits distinct characteristics across regions, influenced by factors such as technological infrastructure, regulatory environments, adoption rates, and the needs of education systems. North America is the largest and most mature market for assessment and proctoring solutions, supported by widespread adoption of e-learning platforms, remote proctoring services, and accelerated digital transformation in education.

Companies in the assessment and proctoring market generate revenue through diverse streams, including subscription-based models (monthly or annual), pay-per-use or test-based pricing, customization and integration services, data and analytics offerings, and content development services to meet the needs of educational institutions, enterprises, and certification bodies.

Excelsoft’s research and development team plays a key role in developing AI- and ML-based next-generation adaptive test engines and intelligent engines for automated construction of items and tests in the learning and assessment market. The R&D team also works on integrating AI into content development and learning experiences as part of the company’s product portfolio.

Excelsoft has partnered with the Indian Institute of Technology (IIT) Ropar to establish the “Prof. Dhananjaya Lab for Education Design and Creative Learning,” an advanced educational technology research lab named after the late Prof. Manchukondanahalli Hiriyanna Dhananjaya, a visionary educationist and former chairman and promoter of the company. This partnership aims to combine academic research and industry expertise to foster innovation in EdTech across areas such as assessments, proctoring, and education delivery, with AI at its core.

Some of Excelsoft’s prominent and long-standing clients include Pearson Education, Inc.; AQA Education; Colleges of Excellence; NxGen Asia PTE Ltd.; Pearson Professional Assessments Limited; Sedtech for Technology Education & Learning WLL; Ascend Learning LLC; Brigham Young University–Idaho; Training Qualifications UK; Surala Net Co. Ltd.; Excel Public School; and The Chartered Quality Institute.

Excelsoft’s revenue from operations grew from ₹1,951.04 million in Fiscal 2023 to ₹2,332.91 million in Fiscal 2025. EBITDA increased from ₹681.79 million in Fiscal 2023 to ₹732.57 million in Fiscal 2025, while profit after tax rose from ₹224.14 million in Fiscal 2023 to ₹346.91 million in Fiscal 2025 on a consolidated basis.

The company's revenue from Pearson Education Group accounted for 59.24%, 58.79%, 46.51%, and 41.89% of Excelsoft’s total consolidated revenue for the three months ended June 30, 2025, Fiscal 2025, Fiscal 2024, and Fiscal 2023, respectively.

Any termination of the contract with Pearson Education Group or loss of business from the client could adversely impact Excelsoft’s revenues, financial condition, cash flows, and results of operations.

Excelsoft Technologies IPO was subscribed 18.1x so far on the final day of the bidding. Here's how different quotas were booked:

QIB: 2.51x

NII: 56.24x

Retail: 10.66x

Focus: Operates in the high-growth Vertical SaaS segment, specifically in the EdTech learning and assessment market.

Client Base: Serves 76 global clients (including the Pearson Group), ensuring predictable, recurring revenue via long-term contracts.

Financial Performance: Demonstrated strong financial health, highlighted by a ~172% PAT surge in FY25.

Client Concentration: Highly reliant on the Pearson Education Group (~59% of revenue), posing a significant disruption risk.

Valuation & Rating: Appears aggressively priced (P/E ~35), leading to a neutral rating with an expectation of only a minor listing gain.

As of August 31, 2025, Excelsoft caters to 76 clients across 19 countries. While serving clients globally, their products and solutions are designed to comply with the relevant technology, security, and quality standards, both global and regional.

Incorporated on June 12, 2000, Excelsoft Technologies (“Excelsoft”) is a global vertical SaaS company focused on the learning and assessment market. With over two decades of experience, it provides technology-based solutions across diverse learning and assessment segments through long-term contracts with enterprise clients worldwide. Its platforms are cloud-based with open and industry standards-compliant APIs, ensuring scalability across organisations and users. Security and performance are core to its product offerings.

Excelsoft Technologies IPO was subscribed 10.42x so far on the final day of the bidding. Here's how different quotas were booked:

QIB: 0.12x

NII: 30.89x

Retail: 7.53x

Excelsoft is a long-established player in digital learning and assessment technology, leveraging proprietary platforms (SARAS, EasyProctor) and early AI adoption across test creation, proctoring, and handwritten digitisation. Its shift to a SaaS-led model from service-heavy revenues positions it for scalable growth and margin improvement.

Strong client retention (10.5 years average tenure) and deep enterprise integration reflect high stickiness and upsell potential. However, current financial indicators do not yet mirror typical SaaS scalability, with modest ROE (~10%), muted revenue CAGR (~9%), and continued revenue dependence on Pearson.

Valuations remain rich at ~39x FY25 P/E and ~57x Q1FY26 annualised, materially higher than peers and requiring execution-led justification.

While Excelsoft offers proprietary tech, long-term relationships, and structural growth tailwinds, near-term performance may stay moderate. We recommend only for long-term, that too for high-risk investors seeking exposure to scalable EdTech platforms with steady EBITDA and strong cash flows.

Excelsoft Technologies IPO entered its last day of bidding today, November 21. This means that investors can place their bids till 5 pm today.

Excelsoft Technologies IPO has a fresh issue aggregating up to ₹180 crore and an offer for sale aggregating up to ₹320 crore. The company proposes to utilise 61.76 crore from the fresh issue for the purchase of land and construction of a new building at the Mysore Property, ₹39.51 crore for upgradation and external electrical systems of its existing facility at Mysore, ₹54.63 crore for funding upgradation of the company's IT Infrastructure and the balance towards general corporate purposes.

The initial public offer of Excelsoft Technologies Ltd received 6.88 times subscription on the second day of the share sale on Thursday.

The ₹500-crore IPO got bids for 21,13,67,250 shares against 3,07,01,754 shares on offer, according to details available with the NSE.

The category for non-institutional investors attracted 18.19 times subscription, while the quota for retail individual investors (RIIs) got subscribed 5.92 times. Qualified institutional buyers' (QIBs) portion fetched 9 per cent subscription.

Excelsoft Technologies IPO grey market premium (GMP) is ₹14 today. With the IPO price band set at ₹120, the estimated listing price is ₹134, implying an expected gain of 11.67% per share. The GMP has ranged between a low of ₹0.00 and a high of ₹30.00.