ESDS Software to raise Rs 700 crore through IPO

ESDS Software, a firm based in Nashik that provides cloud services and data center solutions, plans to file its draft red herring prospectus (DRHP) this week. The company aims to raise up to Rs 700 crore through an initial public offering (IPO). The filing will be submitted to the Securities and Exchange Board of India (SEBI). This upcoming IPO will be a fresh issue of shares. ESDS had previously sought to go public in December 2021 but withdrew its application due to poor market conditions. To assist with the new filing, the company has appointed merchant bankers, with DAM Capital acting as the lead manager. Funds raised from the IPO will be used to expand data centers, invest in AI-enabled GPU cloud technology, and support long-term working capital needs. Founded in 2005 by Piyush Somani, ESDS specializes in AI-enabled cloud solutions and managed services. The company provides infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) to a wide range of clients, including government institutions and businesses in the banking, financial services, and insurance (BFSI) sector. ESDS has over 1,000 clients and reported revenues of Rs 286 crore with a profit of Rs 15 crore for the fiscal year ending March 31, 2024.