ESDS Software IPO

 

ESDS Software Solution Limited is a prominent vendor of maintained cloud services and end-to-end multi-cloud solutions in India (Source: Ken Research Report). ESDS Software IPO is likely to hit the stock market in November 2021.

About ESDS Software Solution

In comparison to standard on-premise IT models, they have established a comprehensive cloud framework on which its clients trust.

It is comprising of cloud infrastructure and well-architected services targeted at decreasing costs and providing organisations with safety, freedom, portability, and reliability.

They feel that their diverse portfolio qualifies them as a “one-stop shop” for cloud adoption for their customers.

In India, they also provide various billing models including “pay-per-consumption,” “pay-per-branch” (for BFSI customers), and “pay-per-transaction,” which they feel helps its customers lower their “Total Cost of Operation” (TCO).

Services

They offer two types of services:

Their revolutionary vertically auto scalable cloud technology platform, “eNlight Cloud,” is part of the Cloud Computing Infrastructure as a Service (IaaS).

Software as a Service (SaaS) and Managed Services are two types of software distribution models:

• SaaS is a software distribution model in which they host applications on cloud systems and make them accessible to target consumers on a subscription basis, enabling customers to create, operate, and manage applications.
• Managed Services, via which they provide a variety of services that help businesses optimise and modernise their cloud infrastructure, secure their data, move legacy data to cloud environments, and maintain it on a day-to-day basis.

Cloud Computing Infrastructure as a Service (IaaS)

Public cloud, private cloud, virtual private cloud, hybrid cloud, and numerous community cloud options are all part of their overall IaaS cloud computing services portfolio.

Their vertical autoscaling technology, which drives their IaaS “eNlight Cloud,” is patented in the United Kingdom and the United States.

To offer a high level of data safety across hypervisor systems, the eNlight Cloud respects to international standards and implements the principle of tiered security.

A hypervisor is a type of emulator – software, hardware, or firmware that generates and runs virtual machines and enables one host device to handle numerous guest virtual systems by virtualizing memory and processing resources.

Software as a Service (SaaS)

They offer software solutions and applications that are hosted on their cloud platform and are available on an annual, semi-annual, monthly, or quarterly subscription basis, allowing their clients to develop, run, and manage apps and services.

They offer both in-house and third-party produced apps on a digital marketplace they created called “Spochub.” Spochub allows them and their software partners to provide clients with tailored packages for their solutions.

Vulnerability scanners, which are tools developed to examine computers, networks, or apps for known vulnerabilities, web access firewalls, and VPN – for secure communication – are all part of their SaaS products.

Business Model

They run their firm on an asset light approach, in which they solely hold computational hardware assets, allowing for faster scalability and lower capital costs of operations.

They sell their goods to government departments and corporations in a variety of industries, including BFSI, industrial, IT and ITES, telecommunications, real estate, medicines, commerce, and educational, and in a number of nations in Asia, Europe, the Middle East, the Americas, and Africa.

ESDS Software IPO

ESDS Software Solution limited, headquartered in Nashik has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 322 Crore & 21,525,000 equity shares on 02 September, 2021.

The Offer includes fresh equity  of INR 322 Crore and an offer for sale(OFS) up to 21,525,000 equity shares of face value of 1 per share, by the promoters.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year ended ( in Cr.)
	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	460.44	411.60	284.71
Total Revenue	174.10	160.53	137.54
Profit After Tax	5.49	0.94	13.81

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	1.03	0.96	3
Financial Year 2020	0.04	0.04	2
Financial Year 2019	2.49	2.39	1
Weighted Average	0.94	0.89

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

They feel that the following are some of the qualitative aspects that go into determining the Offer Price:

• Their comprehensive and integrated suite of services offers a “one-stop shop” for managed cloud solutions to a diverse and prestigious clientele.
• Their business model is solid and scalable, with various growth levers.
• Customers benefit from their creative billing solutions.
• Their industry leading position is backed up by a track record.
• Their senior leadership team’s expertise and knowledge.

ESDS Software IPO Peer Comparison

There are no publicly traded firms in India that operate in a similar industry to them. As a result, providing an industry comparison in regard to the company is not possible.

ESDS Software IPO Details

IPO Opening Date	November 2021
IPO Closing Date	November 2021
Issue Type	Book Building
Face Value	Rs. 1 per  share
IPO Price	0 to 0 per equity share
Market Lot	0
Min Order Quantity	0
Listing At	BSE, NSE
Issue Size	21,525,000 Equity shares
Fresh Issue	332 Crore
Offer for Sale	21,525,000 Equity shares

ESDS Software IPO Date

ESDS Software IPO opening date is November 2021, and the closing date is November 2021. The issue may list on November 2021.

IPO Open Date	November 2021
IPO Close Date	November 2021
Basis of Allotment Date	November 2021
Initiation of Refunds	November 2021
Credit of Shares to Demat Account	November 2021
IPO Listing Date	November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

ESDS Software IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of ESDS Software IPO.

ESDS Software IPO GMP

ESDS Software IPO Grey Market Premium is 0. You can check out other IPOs GMP on below Links.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2021
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

ESDS Software IPO Review

ESDS Software IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of ESDS Software IPO is good or bad.

ESDS Software IPO Risk

• Their inability to prevent service interruptions could have a negative impact on their company.
• Their company could be harmed by an internet security breach that permits unauthorised access to their network or data.
• Failure to follow the laws and regulations that apply to their industry could result in fines and penalties.
• A small number of clients account for a large amount of their revenue.
• Their business may suffer if they are not effective in implementing their growth strategies.
• They are doing business around the globe with threats and difficulties associated with doing business outside of India.
• Their company has unsecured loans from their promoter and IDFC FIRST Bank Limited, which can be revoked at any time.

Other Threats

• There are ongoing legal procedures against their company. Any negative outcome of these proceedings could have a negative impact on their business.
• The quality of their customer service plays a role in their ability to retain client happiness.
• COVID-19’s outbreak and lasting effects, or any other major public health outbreak, could have a negative influence on their business.
• They may not be able to appropriately secure their intellectual property, which could be detrimental to their company.
• Some contingent liabilities exist that are not accounted for in their financial statements.
• Failure to maintain proper insurance coverage in connection with their operation could have a negative impact on their company.

Operation

They have three data centres in India, one in Navi Mumbai, one in Nashik, and one in Bengaluru. Their data centres in India comprise a total of 50,000 square feet throughout three stations.

Their data centres are associated by a 10 Gbps backbone network (a network structure is an aspect of a computer network that connects data centre areas, ensuring a safe way for the exchange of information among various local area networks (LANs) or subnetworks) and are protected by cutting-edge disaster recovery services (Source: Ken Research Report).

In the last three fiscal years, all of their data centres have achieved an uptime of at least 99.995 percent throughout their operational periods.

Clients

Their products are available to a wide range of sectors and customers, including BFSI, healthcare, education, energy and utilities, real estate, IT and ITES, agricultural, industrial, entertainment and media, and government agencies.

They feel that by diversifying their customer base, they can protect themselves from market concentration and industry changes.

With their innovative “pay-per-branch” pricing model, which enables a bank to pay a fixed sum per month per branch.

They maintain their core banking application hosting and other managed services with their BFSI technology partners, they feel they have been able to uniquely support cooperative banks.

Team

Their senior management team’s expertise and ability have contributed to their success. Their Managing Director and Chairman, Piyush Prakashchandra Somani, has over 16 years of expertise in the information technology field.

He has been instrumental in developing their firm ‘s activities in a number of international regions. Rajeev Papneja, their Chief Growth Officer, has tremendous expertise in the field of technology and was named one of India’s “Eminent 100 CIOs” at the 18th Infotech Forum 2020.

Great Place to Work® Institute India and the Economic Times recognised them 28th among India’s Best Firms to Work for in 2020.

Promoters

• Piyush Prakashchandra Somani

Promoter Holding

Pre Issue Share Holding	47.49%
Post Issue Share Holding