ESDS Software Refiles DRHP For Rs 600 Cr IPO To Boost Cloud & Data Center Infra

The Securities and Exchange Board of India (SEBI), the market watchdog, has received ESDS Software Solution Limited's draft red herring prospectus (DRHP), which aims to raise Rs 600 crore through an initial public offering (IPO). In September 2021, the firm had already submitted a DRHP for its IPO. The IPO is solely a fresh offering of up to Rs 600 crore, with a face value of Rs 1 per equity share.

Since pre-IPO placement is limited to 20% of the total value of the fresh issue, the company, in collaboration with the book-running lead managers, may contemplate issuing additional equity shares through a preferential offer or any other way totaling up to Rs 120 crores. The size of the new issue will be lessened if such positioning is finished.

The offer is being made through the book-building method, with a minimum of 75% of the offer going to eligible institutional buyers proportionately and no more than 15% going to non-institutional bids. Retail individual investors will only be allowed to receive a maximum of 10% of the offer.

Cloud computing, other equipment, and other infrastructure for the data centers will be purchased and installed using the Rs 480.7 crore in proceeds from the fresh issuance. The remaining money would be utilized for general company objectives.

The operating revenue of ESDS Software Solution Limited climbed from Rs 207.57 crore in the fiscal year 2023 to Rs 286.52 crore in the fiscal year 2024, a 38.04% rise. In Fiscal 2024, profit after tax was Rs 13.61 crore. Operating revenue was Rs 172.15 crore for the six months ending September 30, 2024, while profit after tax was Rs 23.93 crore. The issue's book-running lead managers are DAM Capital Advisors Limited and Systematix Corporate Services Limited, while the IPO's registrar is MUFG Intime India Private Limited.

Infrastructure as a Service (IaaS), which is divided into colocation and data center services, cloud services, and cloud computing; Managed Services; and Software as a Service (SaaS) are all part of the extensive platform of cloud infrastructure and software solutions that ESDS Software Solution Limited provides. End-to-end AI-enabled cloud, managed services, data center infrastructure, and software solutions are offered by ESDS Software Solution Limited in India. One of just two companies in India offering the whole range of cloud, managed services, data center infrastructure, and software solutions is ESDS.

ESDS Software Solution was one of the first cloud service providers in India to offer community cloud services, according to the Nexdigm Report. The company provided services to 1,398 clients in the six months that ended on September 30, 2024. BFSI, public sector entities, public sector undertakings (PSUs), government agencies, and institutions and organizations and enterprises outside the BFSI and government sectors are among the many end-user industries and clients served by the company's services.