Esconet Technologies files draft papers to raise funds through IPO

Integrated IT solutions company Esconet Technologies on Tuesday said it has filed draft papers to mobilise funds through an initial public offering.

The initial public offering (IPO) is entirely a fresh issuance of up to 33,60,000 equity shares, with a face value of Rs 10 each, and the shares of the company are proposed to be listed on Emerge platform of the NSE, the company said in a statement.

Corporate Capital Ventures is the sole book running lead manager, while Skyline Financial Services is the registrar for the issue.

Esconet proposes to utilise the proceeds from the issue towards working capital requirements of the company and invest in its wholly-owned subsidiary ZeaCloud Services to fund its capital expenditure expenses, as per the draft documents.

A portion of the proceeds will also be used for the general corporate purposes.

Founded in 2012 by second-generation entrepreneurs Santosh Kumar Agrawal and Sunil Kumar Agrawal, Esconet Technologies has been in the business of high-end supercomputing solutions, data centre facilities, storage servers, network security, and data protection.

The company counts global technology firms such as AMD, Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, and NVIDIA, among its technology partners.

Its clientele includes the Ministry of Defence, National Informatics Centre and National Informatics Centre Services Inc (MeitY), IIT, Bharat Electronics Ltd, ONGC, and Engineers India Ltd, among others.

Esconet's revenue stood at Rs 71.46 crore and a profit after tax of Rs 3.05 crore during the first half of the current fiscal year ended September 30, 2023.