IPO Update: This Nashik-Based Cloud Service Firm To Raise Rs 700 Crore Through IPO, DRHP Expected This Week

IPO Update: Nashik-based cloud services and data center firm, ESDS software is planning for a Rs 700 crore debut in the Indian stock market with its initial public offering. The IT firm is set to file its IPO papers (DRHP) with the Securities and Exchange Board of India (SEBI) this week to raise up to Rs 700 crore with the fresh issue, reported Economic Times citing sources.

ESDS IPO in 2025 is coming years after the company withdrew its IPO proposal in 2021 citing uncertain stock market conditions. For the execution of its IPO plans, the cloud services company has this time appointed merchant bankers, with DAM Capital as the book-running lead manager, reported ET.

In 2021, the company had proposed IPO for raising funds to purchase cloud computing equipment for data centers, funding long-term capital requirements, and other general corporate purposes. Further details about how the company plans to utilise IPO fund raising this time are awaited.

ESDS IPO: When is IPO launch expected?

The exact timeline of ESDS IPO is not known and details will be available once the firm will file DRHP with SEBI.

About ESDS IPO

The company was founded in 2005 by Piyush Somani and mainly deals with providing AI-enabled cloud solutions, managing services, data center infrastructure, and software solutions, etc. After covering over two decades of journey since inception, the company founders aim to make it India's next big cloud hyperscaler. The company is known to break into the big league with its eNight Cloud platform. Over twenty years, the company has expanded to a workforce of over more than 1200 employees working across five data centers in India. ESDS also has a global presence in European, Middle East, Americans and African countries.

So far, the company has handled more than 450 Banking, Financial Services, and Insurance (BFSI) clients. With a research and development team of 400 members, the company is shifting its focus on providing sustainable and eco-friendly solutions to their clients. According to its website, the company has catered to more than 250 government organisations and over 600 enterprises and strives to provide a one-stop platform for cloud, IT security and managed services solutions.

The company had reported over Rs 268 crore in revenue and Rs 15 crore in profit for the financial year 2023-24.

IPO market in 2025

Since the beginning of 2025, the primary market in India witnessed a sudden decline in the number of initial public offerings, especially because of the stock market correcting and weakening investors's confidence. However, several big names in the industry are planning to bring their IPOs in the second half of the year including LG Electronics, bOAt, Tata Capital, Ather Energy, LG Electronics, PhonePe, Zepto, Flipkart, JSW Cement, BoAt, HDB Financial Services, Reliance Jio, etc.

The year 2024 witnessed India's biggest ever IPO worth ₹27,870 crore launched by automaker Hyundai. Business tycoon, Mukesh Ambani, is aiming to shatter the record with Reliance Jio IPO which is expected to raise around Rs 35,000-40,000 crore from fresh issues in the Indian stock market in 2025.

Due to stock market volatility in the first three months of 2025, many companies have put their IPO plans in the back seat. However, the last week witnessed positive market sentiment, which experts believe will sustain in the coming months. This week, over four new SME issues and five new listings are scheduled between 24 and 29 March, 2025.