IPO Details
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About ESDS Software Solution IPO
ESDS Software Solution Limited is planning a fresh issue of equity shares with a face value of ₹1 each, aggregating up to ₹600 crores. It does not have an offer for sale. The IPO is being made under Regulation 6(2) of SEBI ICDR Regulations as the company did not have an operating profit in Fiscal 2023.
Objectives of ESDS Software Solution IPO
- Purchase and installation of cloud computing and other equipment and infrastructure for the company’s data centres.
- General corporate purposes
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the net issue |
Non-institutional Investors (NIIs) | Not more than 15% of the net issue |
Retail-individual Investors (RIIs) | Not more than 10% of the net issue |
Industry Outlook
India's IT/ITES sector continues its robust growth, fuelled by rising demand for digital transformation, AI, cloud computing, and cybersecurity. In Fiscal 2024, industry revenue hit USD 254 billion, employing 5.43 million people. With a projected CAGR of 7-8%, the sector is expected to reach new heights by 2028, strengthening India's global IT leadership.
Government initiatives, like the Software Technology Park Scheme and Semicon India, support export growth and domestic semiconductor manufacturing. By 2030, the semiconductor market is projected to triple, reflecting India’s increasing role as a hub for technology innovation, talent, and services worldwide.
Company Information
The company is a leading end-to-end AI-enabled cloud, managed services, data centre infrastructure, and software solutions provider in India. It is one of the only two players in India offering a full spectrum of cloud, managed services, and data centre infrastructure, and ranks first in Fiscal 2024 revenue from these operations (source: Nexdigm Report). The company delivers a comprehensive platform including IaaS, SaaS, and managed services, focusing on security, scalability, and compliance. Serving a diverse clientele across BFSI, public sector, government, and enterprise segments, it is renowned for cost-efficient, secure, and high-performance IT solutions that drive digital transformation nationwide.
ESDS Software Solution IPO Strengths
Market leadership in end-to-end cloud and managed services
The company is a market leader, being one of the only two Indian players to offer a comprehensive suite of cloud, managed services, Data Centre infrastructure, and software solutions. Early adoption of cloud technology, deep expertise, and proven ability to serve diverse industries-especially BFSI, government, and enterprises-provide a strong competitive edge. This integrated approach enables customers to seamlessly navigate digital transformation, compliance, and operational efficiency challenges.
Strong track record and client relationships
The company boasts a high customer retention rate and deep, long-term relationships with major BFSI institutions, government bodies, and enterprise clients. Its ability to cross-sell integrated solutions such as IaaS, SaaS, and managed services leads to enhanced revenue visibility and repeat business. The company’s tailored cloud and security offerings address complex client needs, supporting mission-critical operations for key sectors and fostering enduring customer loyalty.
Comprehensive security and compliance solutions
With an advanced Security-as-a-Service (SECaaS) portfolio, the company enables clients to proactively manage cyber threats and regulatory compliance. Its Security Operations Centre (SOC) monitors and secures thousands of devices, identifying and addressing vulnerabilities, and issuing critical advisories. This robust cybersecurity capability, combined with scalable cloud solutions, positions the company as a trusted partner for organizations seeking resilient, compliant, and cost-effective IT infrastructure in an increasingly digital and regulated environment.
Risks of ESDS Software Solution IPO
1. Risk of technological obsolescence and innovation pressure
The company operates in an industry characterised by rapid technological changes, evolving standards, and frequent new service launches. If it fails to innovate or adapt to new technologies, industry trends, or customer needs, it risks losing relevance, revenue, and market share. Substantial investments in research, development, and partnerships may be required to stay competitive, and there is no guarantee such investments will always deliver successful or timely outcomes.
2. Dependence on government projects and policies
A significant portion (around 29-34%) of the company’s revenue comes directly or indirectly from government projects and entities. Any negative changes in government policies, budgetary allocations, or priorities regarding IT outsourcing could adversely affect business continuity, revenue, and financial stability. Reliance on government contracts also exposes the company to risk from policy uncertainty and changing political climates, which may impact their future project pipeline and cash flows.
3. Historical losses and uncertain profitability
The company experienced net losses in Fiscals 2022 and 2023, raising concerns about its ability to achieve consistent profitability. Losses were driven by rising expenses, exceptional regulatory costs, and increased operational costs. Continued losses could threaten the company’s status as a going concern, require raising additional capital, and increase the risk for shareholders, who may lose all or part of their investment if the company fails to return to sustainable profitability.
All Financial Information about ESDS Software Solution
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of Company | Revenue from Operations in ₹ crores | EPS (Basic) | NAV per Share (₹) | P/E |
|---|---|---|---|---|
ESDS Software Solution Limited | 286.51 | 1.35 | 22.21 | - |
E2E Networks Limited | 94.46 | 15.11 | 44.77 | 152.16 |
Anchor Investor Bidding Date: TBA
Registrar: MUFG Intime India Private Limited Book Running Lead Managers: DAM Capital Advisors Limited, Systematix Corporate Services Limited
Business Model
The company generates revenue by offering end-to-end cloud infrastructure, managed services, Data Centre solutions, and software (SaaS) to businesses, government, and BFSI clients in India. Its business model includes selling IaaS (colocation, cloud computing), managed IT and security services, and customised SaaS solutions on a subscription or pay-per-use basis, enabling clients to adopt secure, scalable, and cost-effective digital infrastructure without heavy upfront investments.
Company Growth Trajectory
The company has showcased robust growth in both revenue from operations and EBITDA over the last three fiscal years. Revenue increased from ₹195.35 crore in FY22 to ₹286.51 crore in FY24, reflecting a strong upward trajectory. EBITDA also grew steadily, rising from ₹58.7 crore in FY22 to ₹101.88 crore in FY24, with EBITDA margin improving from 30.05% to 35.56%. This consistent growth highlights the company’s successful business model, enhanced operational efficiencies, and ability to capitalise on rising demand for cloud and managed service solutions, positioning it well for future expansion and value creation.
ESDS Software Solution IPO Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 292.13 | 212.24 | 198.67 |
Profit Before Tax (in ₹ crores) | 22.29 | (27.69) | (2.14) |
Profit After Tax (in ₹ crores) | 13.61 | (22.46) | (2.663) |
EPS (Basic) | 1.35 | (2.42) | (0.30) |
EBITDA (in ₹ crores) | 101.88 | 47.47 | 58.7 |
ESDS Software Solution IPO Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 22.29 | (27.69) | (2.14) |
Net Cash from Operating Activities (₹ crores) | 45.57 | 56.45 | 57.77 |
Net Cash from Investing Activities (₹ crores) | (1.44) | (54.01) | (69.65) |
Net Cash from Financing Activities (₹ crores) | (58.93) | (20.78) | 32.44 |
Net Cash and Cash Equivalents (₹ crores) | 2.24 | 16.88 | 35.06 |
How to check allotment status of ESDS Software Solution IPO?
1. Visit the Registrar's Website
To check the IPO allotment status for ESDS Software Solution Limited IPO, visit the official website of MUFG Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'ESDS Software Solution Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search' Your ESDS Software Solution IPO allotment status will be displayed.
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check ESDS Software Solution IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your ESDS Software Solution IPO bid and allotment details will be displayed.
How to apply for ESDS Software Solution Limited IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
ESDS Software Solution IPO FAQs
Where can I read more about ESDS Software Solution business?
You can read more about ESDS Software Solution and its IPO from the company’s red herring prospectus (RHP) here.
What is the ESDS Software Solution IPO?
ESDS Software Solution Limited plans to issue new equity shares (face value ₹1 each) totalling up to ₹600 crores through an IPO under Regulation 6(2) of SEBI ICDR Regulations, as it had no operating profit in Fiscal 2023.
Is ESDS Software Solution IPO coming?
Yes, ESDS Software Solution Ltd is expected to come up with its IPO soon.
Who is the Chairman of ESDS Software Solution?
Piyush Prakashchandra Somani is the Chairman of ESDS Software Solution.
What is the lot size of shares of ESDS Software Solution Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of ESDS Software Solution Ltd?
You may read more about ESDS Software Solution and its IPO from the company’s draft red herring prospectus (DRHP) here.
