Cloud infrastructure and data center services provider ESDS Software Solution plans to approach capital markets once again, to mop up Rs 600 crore via initial public offering (IPO). It filed draft papers with the SEBI on March 30, 2025.
As per the draft red herring prospectus, the IPO will consist of solely fresh issue with no fresh issue component. Hence, the entire issue proceeds will be received by the company.
The Maharashtra-based firm that offers a platform of cloud infrastructure and software solutions had filed preliminary papers with the SEBI in September 2021, as per which it was proposed for a fresh issue of Rs 322 crore and an offer-for-sale of 2.15 crore equity shares by investors and promoters. However, in December 2021, it had withdrawn its draft document due to unfavourable equity market conditions.
The company may consider issuance of specified securities worth Rs 120 crore via private placement, preferential allotment or any other mode in pre-IPO round. If it successfully manages to close pre-IPO placement, the said amount will be reduced from the issue.
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ESDS Software Solution claimed to be one of the only two players in India providing the entire spectrum of cloud, managed services, data centre infrastructure and software solutions in India. Among them, it is the largest in terms of revenue in FY24. It offers infrastructure as a service (IaaS which is broadly divided into colocation and data centre services, cloud services and cloud computing, managed services, and software as a service.
The company intends to utilise Rs 480.7 crore out of net IPO proceeds for purchase and installation of cloud computing and other equipment and infrastructure for data centres, and the remainder funds for general corporate purposes.
ESDS that compares with only listed industry peer E2E Networks recorded profit at Rs 13.6 crore for the fiscal 2024 against loss of Rs 22.5 crore in the previous fiscal. Revenue during the same period increased by 38 percent to Rs 286.5 crore. Further, profit for the first half of current fiscal 2025 stood at Rs 23.9 crore on revenue of Rs 172.1 crore.
ESDS Software Solution has appointed DAM Capital Advisors, and Systematix Corporate Services as merchant bankers for managing its public issue.
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