ESDS Software Solutions is reportedly preparing to launch its initial public offering (IPO) in the coming weeks. If the issue proceeds as planned, the Nashik based company will become India’s first listed data centre owner and operator.
According to the company’s draft red herring prospectus (DRHP), the IPO will consist of a fresh issue of equity shares worth up to Rs 600 crore. At the time of the DRHP filing, promoters Piyush Prakashchandra Somani, Komal Piyush Somani, and PO Somani Family Trust held 24.54 per cent, 10.13 per cent and 11.19 per cent stake, respectively.
The proposed public issue comes shortly after Sify Infinit Spaces decided to defer its planned Rs 3,700 crore IPO due to unfavourable market conditions.
About the company
Founded in 2005 and headquartered in Nashik, ESDS Software Solutions provides cloud computing, data centre infrastructure, co location services, Software as a Service (SaaS), and managed IT services. The company operates fully integrated data centres in Nashik, Navi Mumbai, Mohali and Bengaluru.
ESDS also has three subsidiaries, including ESDS Global Software Solution Inc., USA, which provides data centre and managed services.
Listing details
The company’s shares are proposed to be listed on both the BSE and the NSE. DAM Capital Advisors and Systematix Corporate Services are the book running lead managers to the issue, while MUFG Intime India has been appointed as the registrar.
IPO objectives
Of the total proceeds, around Rs 480 crore will be utilised for the purchase and installation of cloud computing equipment and other infrastructure for the company’s data centres. The remaining funds will be used for general corporate purposes.
Financial performance
ESDS reported consolidated revenue of Rs 361.34 crore in FY25, compared with Rs 286.52 crore in FY24. Its consolidated profit after tax rose sharply to Rs 44.23 crore in FY25 from Rs 12.63 crore a year earlier. The company had reported a consolidated loss of Rs 22.46 crore in FY23, indicating a significant turnaround in profitability.
Experienced management
The company is led by promoter Piyush Somani, who has more than two decades of experience in the IT consulting and services industry. According to the DRHP, the leadership team is also supported by a seasoned second line of management with over three decades of industry experience.
Outlook
According to a CRISIL Ratings report released in September 2025, ESDS’ business risk profile is expected to strengthen, supported by higher revenue growth and sustained operating margins.
Key competitors
The company has identified several established players as competitors in its DRHP, including CTRLS Data Centres, Nxtra by Airtel, Yotta, Web Werks, CYFuture, and E2E Networks.
Among the listed peers, E2E Networks offers cloud hosting, managed services and infrastructure solutions, while Yotta, CTRLS, Web Werks, CYFuture and Nxtra by Airtel operate across data centre, cloud and managed services businesses.
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