Cloud Infrastructure Provider Plans Second IPO Attempt with Fresh Issue
ESDS Software Solution Ltd, a prominent cloud infrastructure and data center services provider, has officially filed preliminary documents with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) aiming to raise Rs 600 crore. This announcement marks the company's renewed attempt to go public after an initial filing in September 2021.
IPO Structure: Fresh Issue without OFS
The IPO comprises entirely of a fresh issue, with no Offer-for-Sale (OFS) component included, as detailed in the Draft Red Herring Prospectus (DRHP) submitted to SEBI on March 30. Additionally, ESDS is contemplating a pre-IPO placement to raise approximately Rs 120 crore. Should this placement be successful, the fresh issue size would accordingly be reduced from the initially planned Rs 600 crore.
Funds Allocation for Cloud Expansion
According to the DRHP, Rs 480.7 crore from the IPO proceeds are earmarked specifically for the acquisition and installation of cloud computing equipment, infrastructure upgrades, and other necessary enhancements for ESDS’s data centers. Remaining funds will support general corporate activities, facilitating further expansion and operational efficiency.
Comprehensive Cloud and Managed Services Portfolio
ESDS Software Solution specializes in providing a diverse range of cloud infrastructure, managed services, data center capabilities, and advanced software solutions. The company's service portfolio broadly includes Infrastructure as a Service (IaaS)—comprising colocation, data center services, and cloud computing solutions—Managed Services, and Software as a Service (SaaS) solutions.
These offerings focus on empowering enterprises with robust cloud adoption strategies, effectively optimizing cost management while ensuring essential features like security, flexibility, scalability, and operational reliability.
Pioneering Community Cloud Services in India
Highlighting its innovation in the cloud computing sector, ESDS was one of India's earliest providers to offer community cloud services, as per a Nexdigm Report cited in the DRHP. Utilizing a multi-tenant delivery model, ESDS serves organizations sharing similar operational needs, especially concerning data privacy, security, compliance standards, and regulatory demands.
Financial Performance and Customer Base
ESDS recorded revenue from operations of Rs 172 crore during the six-month period ending on September 30, 2024. Profit after tax for the same period stood at Rs 24 crore. During this timeframe, the company successfully serviced 1,398 clients, underscoring a substantial customer base and market presence.
Book-Running Lead Managers
DAM Capital Advisors and Systematix Corporate Services have been appointed as the book-running lead managers responsible for managing the IPO process.
