Esconet Technologies Limited has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for approval to list on the NSE Emerge platform.
The company’s upcoming initial public offering (IPO) involves issuing 33,60,000 fresh equity shares, each with a face value of ₹10. Corporate Capital Ventures is the book running lead manager for the IPO, while Skyline Financial Services will act as the registrar.
As outlined in the DRHP, Esconet plans to utilize ₹16 crore from the IPO proceeds to address its long-term working capital requirements. Additionally, it intends to invest ₹2.5 crore in its wholly-owned subsidiary, ZeaCloud Services Private Limited, to enhance infrastructure by acquiring additional hardware and software. This strategic investment aims to boost capacity, fortify security measures, and enhance overall monitoring capabilities.
In addition to providing comprehensive IT solutions such as data storage, networks, security, virtualization, and data protection to SMEs, large corporations, and public sector clients, Esconet, headquartered in New Delhi, is engaged in the manufacturing of high-performance supercomputers, data servers, and workstations.
The company introduced the HexaData brand, specializing in top-tier servers, workstations, and storage systems, as part of the Made in India initiative to cater to the growing demand in the domestic market. Esconet’s collaboration with NVIDIA has significantly expanded its presence in the AI and ML space, leading to improvements in their workstations and servers.
Founded in 2012 by second-generation entrepreneurs Santosh Kumar Agrawal and Sunil Kumar Agrawal, Esconet has consistently delivered robust and innovative IT solutions. The company has established partnerships with renowned international technology firms, including AMD, Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, Nutanix, NVIDIA, Sophos, Suse One, Trend Micro, and Veeam.
Esconet boasts an impressive client portfolio, including the Ministry of Defence, Engineers India Limited, Bharat Electronics Limited, ONGC, National Informatics Centre Services Inc (MeitY), IIT, and various others.
The restated consolidated financial statements reveal Esconet’s strong performance, with a revenue of Rs. 71.46 crore and a profit after tax (PAT) of ₹3.05 crore in the first half of the fiscal year ending on September 30, 2023.
