Cloud services and data center firm ESDS Software Solutions has filed draft papers with SEBI for its Rs 1200-1300 crore IPO. New shares worth Rs 322 crore will be issued under the IPO, while 2.15 crore equity shares will be issued under the Offer for Sale (OFS) by an existing investor and a member of the promoter group of the company.
Size of IPO from 1200 to 1300 crores
According to DRHP, South Asia Growth Fund II LP will sell 1.68 crore equity shares under the offer for sale, while GEF ESDS Partners LLC will sell up to 42.31 lakh equity shares. Sarla Prakashchandra Somani will sell 4 lakh equity shares, while South Asia EBT Trust will sell 34 thousand equity shares. Nashik-based ESDS Software Solutions can also get a placement of 60 crores before the IPO. According to merchant bank sources, the size of the IPO will be between Rs 1200 to 1300 crores.
Funds from the IPO will be used to purchase cloud computing equipment for the company’s data centers and for long-term capital requirements. A portion of the fund will be used to repay certain term loans of the company and for general corporate purposes.
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What does the company do?
The company was founded in 2005 by Piyush Somani. Digital Transformation Catalyst and Enabler Company ESDS Software Solutions provides its services in Asia Pacific, Europe, Middle East, America and Africa. Its business model is divided into cloud services, data center services and product R&D. It primarily serves the BFSI, Healthcare, Education, Energy & Utilities, Real Estate, IT & ITeS, Manufacturing, Entertainment-Media and E-commerce sectors. Some of its major clients are SIDBI, Tata Capital, DCB Bank, Union Bank and SBI Capital Markets.