ESDS Software Solution Ltd. has received permission from the market regulator, Securities and Exchange Board of India, to float an initial public offering (IPO) of ₹600 crore. The regulatory approval gives the company the green light to make a long-planned entry into the public marketplace. This approval places ESDS among the most recent technology-centric firms to make an initial public offering to investors.
ESDS IPO Structure: 100% Fresh Issue With No OFS
The coming initial public offering (IPO) of ESDS Soft Software Solution Ltd. will be 100% fresh issuance, with no offering for sale this implies that all the proceeds raised from the issue will go to the company.
Important Aspects: ESDS IPO structure
- Size of Issue: 600 crores
- Type of issue: Fully fresh equity issue
- Face value: 1 rupee per equity share
The fresh issue structure indicates that the capital raised will be used for growth and operational expansion, and to support the business.
ESDS Software IPO Listing on BSE and NSE
On completion of the IPO, ESDS intends to list its equity shares on both of India’s principal stock exchanges, the NSE and BSE. The company expects that a dual listing on both the BSE and the NSE will enable the firm to significantly enhance its market reach and will facilitate increased liquidity after the company’s shares begin to trade on the stock exchanges.
Lead Managers Appointed for ESDS IPO
ESDS has appointed the following financial institutions as book-running lead managers for the IPO:
- DAM Capital Advisors
- Systematix Corporate Services
These firms will supervise the entire IPO process, including designing of the issue, aligning with the regulations, and facilitating the stakeholders involved in the process.
Why ESDS’s ₹600 Crore IPO Approval Is Significant
SEBI giving its approval is a significant step for ESDS Software Solution Ltd in its journey towards becoming a public company, as it is the first time that it will be listed in a stock exchange as a public company.
This is of great importance for the following participants:
- Upcoming IPOs
- Companies in the technology and/or cloud-services sector
- Unlisted companies and developments in the pre-IPO market
For the people monitoring the market, this approval clarifies ESDS’s timeline for listing, as well as its regulatory situation.
What to Expect Next in the ESDS IPO Journey
With this approval from SEBI, it is expected that ESDS will move on to the following steps in the IPO process, which includes announcing the pricing range, the dates for the issue, as well as the offer documents that contain the relevant details. In the following weeks, it is expected that ESDS will give additional information regarding the timeline of the IPO.
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FAQ’s
Q1-What approval has ESDS Software Solution Ltd. received from SEBI?
ESDS Software Solutions Ltd has received its first regulatory approval from SEBI after submitting its IPO Draft Red Herring Prospectus for its ₹600 crores IPO. This will allow the company to proceed to its public issue and commence the listing on the Indian stock exchange.
Q2-What will be the structure and size of the ESDS IPO?
The size of the ESDS IPO will be ₹600 crores and will be a completely fresh issue with no offer for sale. In this case, the company will only party the funds through the IPO.
Q3-Who is dealing with the IPO of ESDS as book running lead managers?
ESDS IPO has designated DAM Capital Advisors and Systematix Corporate Services as book running lead managers. These are the firms that will take care of issue structuring, regulatory coordination and communication with the investors.
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Disclaimer
This article is for informational purposes only and should not be considered investment advice. Prices and data of unlisted shares are based on publicly available sources and may vary. Investors are advised to conduct independent research or consult financial professionals before making investment decisions.
