Indian cloud services firm ESDS gets nod for IPO
By Vinu Lal
13:19, 7 December 2021
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.
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.
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