SEBI approves initial share-sale of ESDS Software Solution
Cloud services and data centre firm ESDS Software Solution on Monday has received an approval to float initial public offer from the capital markets regulator Securities and Exchange Board of India.
Cloud services and data centre firm ESDS Software Solution on Monday has received an approval to float initial public offer from the capital markets regulator Securities and Exchange Board of India.
The initial share sale comprises of a fresh issue of Rs 322 crore and an offer for sale of 2,15,25,000 equity shares by investors and promoters.
GEF ESDS Partners LLC to sell up to 42,31,000 equity shares, followed by South Asia Growth Fund II LP which will sell up to 1,68,60,000 equity shares. Similarly, Sarla Prakashchandra Somani and South Asia EBT Trust to sell up to 34,000 and 4,00,000 equity shares respectively in OFS.
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 and for general corporate purposes.
The Nashik-based 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.
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.
The company’s revenues from operations jumped 8.43 per cent from Rs 158.57 crore in fiscal 2020 to Rs 171.93 crore in fiscal 2021 amid rise in sales of cloud hosting, managed services and technical support services, while its net profit jumped to Rs 5.48 crore in FY21 from Rs 0.94 crore for FY20.
Axis Capital Limited and IIFL Securities Limited are the book-running lead managers and Link Intime is the registrar to the issue.
09:27 PM IST