ESDS Software Sets the Stage for IPO with Ambitious Plans

Nashik-Based Cloud Services Firm Eyes ₹700 Crore Amidst Market Recovery

ESDS Software, a cloud services and data center firm headquartered in Nashik, is gearing up to file its draft red herring prospectus (DRHP) this week with the Securities and Exchange Board of India (SEBI). The company aims to raise up to ₹700 crore through an initial public offering (IPO), which is expected to be a fresh issue.

Resuming Plans After Market Reevaluation

The company’s previous attempt at going public was in December 2021; however, it had to withdraw the IPO due to prevailing unfavorable market conditions. The current market dynamics appear more favorable, prompting ESDS to renew its IPO plans.

Strategic Appointments to Fuel Growth

Ahead of this fresh filing, ESDS has taken significant steps by appointing a lineup of merchant bankers to streamline the IPO process. DAM Capital has been designated as the book-running lead manager for the offering.

Purpose of IPO Proceeds

The funds raised from the IPO will be directed towards several strategic objectives. These include:

• Expanding data center infrastructure
• Investing in GPU cloud technologies for artificial intelligence
• Addressing long-term working capital needs
• General corporate purposes

Company Overview: A Leading Cloud Solution Provider

Founded in 2005 by Piyush Somani, ESDS Software has established itself as a prominent provider of AI-enabled cloud solutions. Their service offerings encompass managed services, data center infrastructure, and a range of software solutions.

Diverse Product Offerings

ESDS specializes in infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) products. The company is dedicated to delivering secure, scalable, and cost-effective cloud solutions tailored to the unique needs of businesses across various sectors.

Clientele: A Broad Spectrum of Industries

With a rich client portfolio, ESDS caters to a diverse range of industries, including:

• Banking, Financial Services, and Insurance (BFSI)
• Government institutions, notably through Government Community Cloud initiatives
• Enterprise clients seeking tailored cloud solutions

Notable Partnerships and Clients

ESDS has forged valuable relationships with prominent organizations, including:

• SIDBI
• PFC
• STPI
• Infrasoft Technologies
• Tech Mahindra
• NTT Data Business Solutions

Growing Client Base and Financial Performance

With a client base exceeding 1,000, ESDS has demonstrated robust financial performance, reporting revenues of ₹286 crore and a profit of ₹15 crore for the fiscal year ending March 31, 2024.

Conclusion: A Promising Future Ahead

As ESDS Software prepares for its IPO, the company is positioned to leverage its strength in cloud services and AI technologies. With strategic investments and a clear focus on growth, ESDS is set to make a significant impact in the technology and cloud services landscape.