Nashik-based, Cloud services & data centre firm ESDS Software Solution has received approval from the capital markets regulator Sebi to go-ahead with its initial public offering (IPO). The company had filed its draft papers in September this year.
The public offer comprises a fresh issue of Rs 322 crore and an offer for sale of 2,15,25,000 equity shares by investors 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.
The company said 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. If the said pre-IPO placement is completed, then accordingly the fresh issue size will be reduced.
The net proceeds from the fresh issue will be utilised to the extent of Rs 155 crore for purchasing cloud computing equipment for data centres, Rs 75 crore for funding long term working capital requirements, Rs 22 crore for repay/prepay of loans of the company and for general corporate purposes.
ESDS Software Solution is amongst India's leading managed cloud service and end-to-end multi-cloud requirements providers. It offers cloud computing Infrastructure as a Service (IaaS), and Software as a Service (SaaS), and managed services.
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.
The company operates the business on an asset-light model, which comprises ownership of computing hardware assets only, thereby allowing quicker scalability and reduced capital cost of operations.
It offers products across diversified industries that include government ministries & companies and corporate entities across sectors such as BFSI, manufacturing, IT and ITES, telecom, real estate, pharmaceuticals, retail and education and in several countries across the APAC region, Europe, Middle East, the Americas, and Africa.
Its revenues from operations increased 8.43% from Rs 158.57 crore in fiscal 2020 to Rs 171.93 crore in fiscal 2021 primarily due to due to increase in sales of cloud hosting and managed services and technical support services, while its net profit jumped to Rs 5.48 crore for fiscal 2021 from Rs 0.94 crore for fiscal 2020.
Axis Capital Limited and IIFL Securities Limited are the book-running lead managers and Link Intime is the registrar to the issue.