PremiumMUMBAI: ESDS Software Solution Ltd, a Nashik-based cloud services and data centre, has filed draft papers with the Securities Exchange Board of India to raise funds through an initial public offering (IPO).
The IPO comprises a fresh issue of equity shares worth Rs322 crore and an offer for sale of up to 21.53 million shares by existing shareholders and promoters.
The OFS will see sale of up to 4.23 million shares by ESDS Partners LLC, up to 16.86 million shares by South Asia Growth Fund II LP. Currently, ESDS Partners LLC holds 4.21% stake, while South Asia Growth Fund II LP owns 3.67% share in the company.
Axis Capital and IIFL Securities are the lead managers to the issue.
Proceeds from the IPO will be used to buy cloud computing equipment, estimated at Rs155 crore, for its data centres. Around Rs75 crore will be used to fund long-term working capital requirements, while Rs22 crore will be used to repay certain term loans.
As of June 2021, its total secured borrowings were at Rs71.18 crore.
For fiscal 2021, ESDS Software Solution reported a profit of Rs5.48 crore versus Rs93.50 lakh a year ago. Revenue during the period stood at Rs171.93 crore against Rs158.57 crore a year ago.
ESDS Software Solution is among India’s leading managed cloud service and end-to-end multi-cloud requirements provider.
The company offers products across diversified industries which include government ministries, companies, and corporate entities across sectors such as BFSI, manufacturing, IT and ITES, telecom, real estate, pharmaceuticals, retail and education. It has clients in countries across the APAC region, Europe, Middle East, the Americas and Africa.
Its comprehensive IaaS cloud computing services portfolio includes public cloud, private cloud, virtual private cloud, hybrid cloud and various community cloud offering. As part of SaaS offerings, it also provides software products and applications, hosted on their cloud platform, on an annual, semi-annual, monthly or quarterly subscription model.
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