ESDS Software Solution IPO launches amid rising hardware costs and competition
Indian cloud provider ESDS Software Solution is launching its IPO, a fully fresh issue aiming to raise ₹720 crore. The offering comes as hardware costs for data centers surge and competition for AI services intensifies.
ESDS Software Solution, an Indian cloud and AI ecosystem provider, is set to launch its Initial Public Offering (IPO) tomorrow. The Nashik-based company aims to raise ₹720 crore through a fresh issue of shares, with the price band set between ₹408 and ₹429 per share.
The IPO proceeds are earmarked for significant expansion of ESDS's data center infrastructure, including GPUs and servers. This move aligns with India's data center industry's shift towards AI infrastructure, as ESDS seeks to capitalize on the growing demand for AI compute power and sovereign cloud services.
However, the expansion faces headwinds from sharply increasing hardware costs and intensifying competition. The company noted that the cost of essential equipment, such as servers and GPUs, has risen considerably since its initial filing, meaning the capital raised will acquire fewer assets than initially projected. This comes as ESDS aims to make GPU-as-a-service and AI compute its next growth drivers.
Founded over two decades ago, ESDS has evolved from providing back-office support to becoming a comprehensive cloud and AI solutions provider. The company offers Infrastructure-as-a-Service (IaaS), Managed Services, and Software-as-a-Service (SaaS) to over 2,500 customers, with a significant portion being government entities. ESDS reported revenue of ₹472 crore in FY26, with a profit after tax of ₹120 crore.