End to End Cloud Service Co., ESDS Software files DRHP for its IPO
Nashik-based, Cloud services & Data Center firm, ESDS Software has filed its draft red herring prospectus with the Securities and Exchange Board of India to raise finance through an initial public offering (IPO).
As per market sources, they are expected to raise between Rs 1200-1300 crore.
The IPO consists of a Fresh Issue of Rs 322 crore and an Offer for Sale (OFS) of up to 21.53 million equity shares by its investor shareholders and promoter group shareholder.
The OFS comprises up to 4.23 million shares by GEF ESDS Partners LLC, up to 16.86 million by South Asia Growth Fund II, L.P, up to 34,000 equity shares by South Asia EBT Trust (Acting through its trustee, Orbis Trusteeship Services Pvt. Among the Promoters, up to 4 lakh equity shares by Sarla Prakashchandra Somani.
The proceeds from its fresh issuance will be used to purchase cloud computing equipment for its data centres, long term working capital requirements as well as repay or prepay some of its term loans availed besides general corporate purposes
Founded in 2005, by Piyush Somani, the digital transformation catalyst and enabling co., stands to be amongst the leading cloud service providers and is present across APAC, Europe, Middle East, The Americas and Africa. It operates across Managed Cloud Services, Cloud IaaS, SaaS and Security Services serves customers across BFSI, Healthcare, Education, Energy & Utilities, Real Estate, IT and ITes, Agriculture, Manufacturing, Entertainment & Media, E-Commerce sectors, including government organisations, supporting their e-governance and smart city projects besides other initiatives. Some of the names being Tata Capital Financial Services, Small Industries Development Bank of India, Larsen and Toubro Infotech, Tech Mahindra, Symphony, Software Technology Parks of India, MIDC and many more.
It’s diversified portfolio positions it as a “one-stop-shop” for customer’s Cloud adoption. They have introduced differentiated Cloud billing models such as Pay-Per-Consumption and Pay-Per-Branch for banks and Pay-Per-Transaction for e-commerce customers. Besides, ESDS provides tailored solutions and has achieved many firsts as an Indian entity such as its Vertical Auto-Scaling Patent, a patent in the Cloud and Infrastructure Hosting space, Tier III Rated Data Center, and as on June 30, 2021, has 177 R&D Engineers on board constantly innovating and customising its cloud services.
For FY21, its total income stood at Rs 174.10 crore against Rs 160.53 crore a year ago. EBITDA for the period was at Rs 63.81 crore over Rs 51.72 crore last year.
Axis Capital Limited and IIFL Securities Limited are the book running lead managers to the issue.
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