The company is expected to raise Rs 1,200-1,300 crore through its initial float, sources said. The IPO would be a mix of fresh share issues and partial exits by existing shareholders.
According to the DRHP, the company would issue fresh equity shares worth up to Rs 322 crore and existing shareholders will offload up to 2,15,25,000 equity shares from their stake through offer for sale (OFS).
Shareholders participating in the OFS include GEF ESDS Partners LLC (up to 42,31,000 equity shares), South Asia Growth Fund II (up to 1,68,60,000 equity shares), South Asia EBT Trust (up to 34,000 equity shares) and Sarla Prakash Chandra Somani (up to 4,00,000 equity shares).
The company is also considering a rights issue for existing shareholders, pre-IPO placement or preferential allotment aggregating up to Rs 60 crore, which would be reduced from the fresh issue.
Founded in 2005 by Piyush Somani, the promoter, ESDS is into the business of cloud services, data center services, and product R&D across sectors.
50 per cent portion of the net issue is reserved for qualified institutional buyers (QIBs), whereas 15 per cent stake will be allotted to non-institutional investors (NIIs). Retail investors will have 35 per cent reserved for them.
The Mumbai-based company has appointed Axis Capital and IIFL Securities to manage the issue, whereas Link Intime India is the registrar to the issue.
In 2015, the company raised $4 million in funding by the Canbank Venture Capital fund, followed by another round of stake sale in 2018 to South Asia Growth Fund and Global Environment Capital Company LLC.
For the year ended March 31, 2020, the company reported a revenue of Rs 160.5 crore and operating profits of Rs 51.7 crore.
