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Excelsoft Technologies Share Lists at 12.5% Premium: What Investors Should Do Now?

Md Salman Ashrafi Image

Md Salman Ashrafi

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4 min read
Excelsoft Technologies Share Opens in Green: What’s Next?
Table Of Contents
  • Key Facts and First-Day Trends
  • Lock-in Period and Its Market Impact
  • Growth Drivers and Risks
  • Should You Hold or Sell Now?

Today, Excelsoft Technologies' IPO listed on the NSE at ₹135 per share, marking a 12.5% gain from its IPO price of ₹120. The stock also hit an intraday high of ₹142.59, reflecting strong initial interest from investors.

In this blog, you will understand how Excelsoft Technologies’ share price behaved on listing day, when key lock-in periods end for anchor investors, and what that might mean for near-term price moves. You will also see a simple breakdown of the company’s growth potential and risks so that you can think clearly about whether holding or selling now fits your own risk appetite and time horizon.​

Excelsoft shares opened at a premium to the issue price with a market cap of around ₹1,550 crore, reflecting the hype before listing.

Compared with peers in the Indian SaaS sector, Excelsoft’s listing gains are encouraging, but valuation remains on the high side at a P/E ratio of nearly 40 times FY25 earnings. This premium suggests expectations of strong future growth but also raises caution about potential overpricing.

Lock-in Period and Its Market Impact

Excelsoft’s anchor investors and promoters have a lock-in period, which usually ends several months post-listing. Historically, when this lock-in expires, there can be increased share supply in the market, causing short-term price pressure.

Investors watching this stock should note the lock-in expiry timeline (often around 1-3 months after listing) and be prepared for possible volatility. This is a common yet often overlooked factor that can affect stock price irrespective of business fundamentals.

Growth Drivers and Risks

Excelsoft operates in a fast-growing SaaS niche focused on education, backed by strong global demand for online learning and assessment tools. Its asset-light model and strong client retention add stability.

However, investors should weigh risks like high client dependence (almost 60% from one client), forex exposure without hedging, and short contract tenures that may affect revenue predictability.

Understanding these contrasting factors helps investors assess whether the current premium pricing justifies future growth.

Also Read: Excelsoft Technologies’ ₹500 Cr Public Issue Explained

Should You Hold or Sell Now?

A 12.5% listing gain is a good start, but it does not remove the fact that you are now holding a high P/E, concentrated-client stock in a volatile segment.

  • The stock’s high valuation demands continued strong growth; if client concentration risk or currency swings hit, expect share price pain.
  • Just because shares trade above the IPO price doesn’t mean they are cheap or stable.
  • Remember, lock-in expiry could cause selling pressure regardless of business health.
  • If you bought purely for listing-day gains, rethink your holding; IPO stocks can be volatile and are not guaranteed winners.
  • If you believe in long-term SaaS growth and Excelsoft’s ability to diversify clients and manage risks, holding with caution might pay off.

Final Word: Stay Patient and Watch Key Events

Excelsoft Technologies' IPO listing was positive, but investors should keep monitoring financial results, client diversification progress, forex risk management, and the lock-in expiry timeline.

IPO stocks require patience and readiness for ups and downs. Make your decisions with a clear understanding of the risks and growth potential, not just short-term market moves.

For more IPOs, check INDmoney’s IPO tracker here.

Disclaimer

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