ESDS Software Solution Ltd IPO

Last Updated: 10 February 2022 11:54 AM by 5Paisa

IPO Synopsis
ESDS Software Solutions, a Nashik-based cloud services & data centre firm, is set to raise funds via an IPO after receiving SEBI’s approval. 
The public offer comprises a fresh issue of Rs 322 crore and an offer for sale of 2,15,25,000 equity shares by existing shareholders and promoters. 
The offer for sale comprises up to 42,31,000 equity shares by GEF ESDS Partners LLC, up to 1,68,60,000 equity shares by South Asia Growth Fund II LP, up to 34,000 equity shares by South Asia EBT Trust, and up to 4,00,000 equity shares by Sarla Prakashchandra Somani.
It may consider a further issue of Rs 60 crore of specified securities through a rights issue to existing shareholders, private placement, preferential offer, or any other method. This would effectively reduce the fresh issue size.
Axis Capital Limited and IIFL Securities Limited are the lead managers to the issue.

Objective of the issue
The net proceeds from the fresh issue will be utilised towards
•    purchasing cloud computing equipment for data centres worth Rs 155 crores 
•    funding long term working capital requirements worth Rs 75 crores
•    repaying/prepaying of loans of the company worth Rs 22 crores 
•    for general corporate purposes
 

ESDS Software solution is amongst India’s leading managed cloud service and end to end multi-cloud requirements provider. It has built a comprehensive cloud platform, consisting of cloud infrastructure, well-architected solutions aimed at reducing cost and providing safety, flexibility, scalability and reliability to enterprises compared with the traditional on-premise IT models. 
The product/service portfolio offers: (a) Cloud Computing Infrastructure as a Service (IaaS) (b) Software as a Service (SaaS) and Managed Services. 
It has also collaborated with the government and offers SaaS offerings and data centre solutions which includes
The business is operated through three data centres in India, one each in Navi Mumbai, Nashik and Bengaluru covering approx. over 50,000 sq. feet across the three locations. The data centres are connected on a 10 Gbps backbone network, providing a secure path for the exchange of information between different local area networks (LANs) or subnetworks and is backed up with state-of-the-art disaster recovery services.
The products are offered across industries and a diversified customer base, which include clients from BFSI, healthcare, education, energy and utilities, real estate, IT and ITES, agriculture, manufacturing, entertainment and media and government department
The company has also adopted a “go-to-market” strategy, by collaborating with other companies to deliver customers with bundled solutions. The list of partners includes Tech Mahindra Limited, Infrasoft Technologies Limited, NTT Data Business Solutions Private Limited and Larsen & Toubro Limited allowing to benefit from partners’ goodwill, access to their technologies, collaborate on innovation and scale offerings.
 

Financials