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Indian cloud services firm ESDS gets nod for IPO

By Vinu Lal

13:19, 7 December 2021

Conceptualisation of SaaS – software as a service
ESDS has yet to finalise the share price and date of IPO – Photo: Shutterstock

India’s ESDS Software Solution, a cloud services and data centre company, has received the market regulator’s approval for its proposed stockmarket launch.

The company received the final approval from the Securities and Exchange Board of India’s (SEBI). 

A final observation letter from the market regulator is mandatory to launch an initial public offering (IPO). The company had filed its draft red herring prospectus (initial papers) in September this year.

The company has yet to finalise the per-share price and date of subscription for the IPO. 

ESDS Software aims to raise about INR12-INR13bn ($16m-$17.3m) through the IPO, according to a 4 September report in the Business Standard.

Fresh issue and offer for sale

The company’s IPO would comprise a fresh issue of INR3.22bn ($44.1m) and an offer for sale (OFS) of up to 21.5 million shares by investors in the company, according to the prospectus.


0.66 Price
-0.910% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
Overnight fee time 22:00 (UTC)
Spread 0.00006


1.08 Price
-0.620% 1D Chg, %
Long position overnight fee -0.0080%
Short position overnight fee -0.0003%
Overnight fee time 22:00 (UTC)
Spread 0.00006


1.26 Price
-0.740% 1D Chg, %
Long position overnight fee -0.0046%
Short position overnight fee -0.0036%
Overnight fee time 22:00 (UTC)
Spread 0.00013


0.66 Price
-0.910% 1D Chg, %
Long position overnight fee -0.0073%
Short position overnight fee -0.0009%
Overnight fee time 22:00 (UTC)
Spread 0.00006

Investors such as GEF ESDS Partners intend to offload up to 4.2 million shares, South Asia Growth Fund II LP up to 16.8 million shares and South Asia EBT Trust up to 34,000 shares. 

Net proceeds

The company intends to use INR1.55bn of the net proceeds from the issue to buy cloud computing equipment for data centres, INR750m for funding long-term working capital requirements and INR220m to repay loans and for general corporate purposes.

The company, based in the west Indian city of Nashik, offers cloud computing infrastructure, software as a service and managed services.

The firm offers products and services to both government and companies in the private sector across a range of industries.

Axis Capital and IIFL Securities are managers to the issue.

Read more: Qualcomm-backed CE Info Systems fixes IPO float price band

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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