ESDS Software Solution files draft papers with Sebi for Rs 600 crore IPO

Cloud infrastructure and data center services provider ESDS Software Solution Ltd has filed preliminary papers with capital markets regulator Sebi to mop up Rs 600 crore through an initial public offering (IPO).

The IPO is solely a fresh issue with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP) filed on March 30.

This marks the company's second attempt to go public. Previously, the company had filed draft papers for its IPO in September 2021.

The company may consider raising Rs 120 crore through a pre-IPO placement round. If such a placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh issue to the extent of Rs 480.7 crore will be used for purchase and installation of cloud computing and other equipment and other infrastructure for the Data Centres and the remainder funds for general corporate purposes.

ESDS Software Solution provides the entire spectrum of cloud, managed services, data centre infrastructure and software solutions.

It offers a comprehensive platform of cloud infrastructure and software solutions, which includes infrastructure as a Service (IaaS), categorized into colocation and data center services, cloud services, and cloud computing; Managed Services; and Software as a Service (SaaS).

These solutions enable the delivery of well-architected cloud adoption strategies designed to help customers reduce costs while ensuring security, flexibility, scalability, and reliability.

According to the Nexdigm Report, ESDS Software Solution was among the first cloud service providers in India to introduce community cloud services.

These services are delivered through a multi-tenant model to organizations with similar business models and requirements, including data privacy, security, compliance, and regulatory considerations.

In the six months ended September 30, 2024, the company serviced 1,398 customers.

For the six months ended September 30, 2024, revenue from operations stood at Rs 172 crore and Profit after tax at Rs 24 crore.

DAM Capital Advisors and Systematix Corporate Services are the book-running lead manager to the issue.