ESDS Software Solution Ltd IPO

ESDS Software Solution is amongst India’s leading managed cloud service and end to end multi-cloud requirements provider. The company has built a comprehensive cloud platform which their customers rely on, consisting of cloud infrastructure, well-architected solutions aimed at reducing cost and providing safety, flexibility, scalability and reliability to enterprises compared with the traditional on-premise IT models.

The public offer comprises a fresh issue of Rs 322 crore and an offer for sale of 2,15,25,000 equity shares by existing shareholders and promoters. The offer for sale comprises up to 42,31,000 equity shares by GEF ESDS Partners LLC, up to 1,68,60,000 equity shares by South Asia Growth Fund II LP, up to 34,000 equity shares by South Asia EBT Trust, and up to 4,00,000 equity shares by Sarla Prakashchandra Somani. It may consider a further issue of Rs 60 crore of specified securities through a rights issue to existing shareholders, private placement, preferential offer, or any other method. This would effectively reduce the fresh issue size.

The net proceeds from the fresh issue will be utilised towards

  • purchasing cloud computing equipment for data centres worth Rs 155 crores
  • funding long term working capital requirements worth Rs 75 crores
  • repaying/prepaying of loans of the company worth Rs 22 crores
  • for general corporate purposes



Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Listing at NSE, BSE

IPO Open Date To be announced
IPO Close Date To be announced
Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat Account
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

IPO Financials

Key Financial Indicators 2019 2020 2021
Total Income (in millions) 1,741.01 1,605.34 1,375.41
EBITDA 638.05 517.23 471.46
EBITDA Margin (%) 36.65 32.22 34.28
Revenue from long-term contracts (as a % of the total revenue for that respective year) 92.88 84.38 88.53
Revenue from existing customers (as a % of the total revenue for that respective year) 88.53 74.53 69.22
New customers added during the period (nos) 406 318 297
Revenue from top 20 customers (as a % of the total revenue for that respective year) 50.90 53.63 59.87
Average revenue per customer (in million) 24.39 23.40 20.96
Revenue from IaaS (as a % of the total revenue for that respective year 51.15 52.99 54.90
Revenue from SaaS & Managed Services (as a % of the total revenue for that respective year) 48.85 47.01 45.10

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Why should you invest in ESDS Software Solutions:

Below are your top 2 reasons:

  • Due to IT adoption led by cloud computing by the firms, there has been a huge transformation of backend operations resulting in an intensified value proposition for the customers. With the advancement of cloud services, a lot of small companies got access to technological capabilities which was prior available to large enterprises only.
  • Due to the impact of Covid 19 in 2020, the cloud service got accelerated. During the first quarter of 2020, the use of cloud computing increased by 35%, compared to the fourth quarter of 2019. The shift to work-from-home led the firms to choose cure, reliable, scalable, and cost-effective technology services across the country.

Know before investing

Strengths Risks
Comprehensive and integrated range of offerings that provide a "one stop shop" for managed cloud solutions to a diversified and marquee clientele Inability to prevent service disruptions could adversely impact reputation, business and results of operations
Robust and scalable business model with multiple levers of growth An online security breach, which allows unauthorized access to firm’s network or data, raising doubts on firm’s credibility and increasing liability
Innovative billing solutions that derive value to customers Delay in placing orders for cloud computing equipment, or in the event the vendors are not able to provide the equipment in a timely manner could disrupt operations

How to apply for ESDS Software Solution Ltd IPO ?

Retail investors need to apply for the IPO using UPI

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for ESDS Software Solution Ltd IPO and approve the payment on your UPI ID.

Demat Account

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Frequently asked questions

  • An IPO also known as initial pulic offering or stock launch is a process when a private company sale its shares to public for the first time. Learn more about IPO at our knowledge centre.

  • ESDS Software Solutions Limited comprises a fresh issue of Rs 322 crore and an offer for sale of 2,15,25,000 equity shares by existing shareholders and promoters.

  • A lot size is the minimum number of shares that an investor has to bid for. A lot size differs for each IPO and is fixed by the company.

  • IPO Price Band is the price range within which investors can bid for the shares. The minimum price is called the floor price and the maximum price is called the cap price.

  • Issue size is the total value of an IPO. It is calculated by multiplying the number of shares offered by the company by the issue price per share.

  • You will receive an email on your registered email id if the IPO shares are allotted to you. Alternatively, you can also visit the registrar of the company’s official website and provide the details as asked in the allotment status section of the website.

  • IPOs, as such, do not have any taxes. You are taxed only when you decide to sell the IPO shares. Any monetary profit you make while selling the IPO shares is referred to as ‘capital gains’.

    Capital gains tax is charged depending on how long you held the shares for. If you owned the shares for less than 12 months, it is considered as short-term capital gains and if it is over 12 months, it is referred as long-term capital gains.

    Tax on short-term capital gains is 15%. It is 10% for equity gains in the long run (over 12 months). Do remember that you are taxed if the equity proceeds exceed Rs 1 lakh.