The information technology sector has been contributing significantly to India’s GDP for a while now. At end of fiscal 2021, the country’s IT industry was valued at $45 billion. It is estimated that as of December 2020, there were 4.36 million IT workers in India.
It is expected that IT spending would rise to $93 billion this year and further increase to $98.5 billion in 2022. It is forecasted that the industry’s contribution to the national economy would reach 10% by fiscal 2025.
ESDS Software Solution Limited recently filed draft papers with the Securities and Exchange Board of India to raise funds through an initial public offering. The IPO comprises a fresh issue of shares worth ₹3.22 billion and an offer for sale of up to 21.53 million shares by existing shareholders and promoters.
ESDS plans to utilize ₹1.55 billion from the net proceeds to purchase cloud computing equipment for its data centers. The company has sanctioned ₹457.50 million for fund-based and non-fund-based working capital facilities. It will use ₹220 million for full or partial repayment of certain term loans. The remainder of the amount will be used for general corporate purposes.
Cloud Service
ESDS Software manages cloud services and provides end-to-end multi-cloud requirements. The company has a comprehensive cloud platform consisting of cloud infrastructure and solutions for reducing cost and providing better safety, flexibility, scalability, reliability, etc. to enterprises, compared with traditional on-premise IT models.
The Nashik, Maharashtra-based company offers products across diversified sectors that include government ministries, companies, and corporate entities across sectors such as BFSI, manufacturing, IT/ITES, telecom, real estate, pharmaceuticals, retail, and education.
The company’s comprehensive IaaS cloud computing services portfolio includes public cloud, private cloud, virtual private cloud, hybrid cloud, and various community cloud offerings. It also provides software products and applications, hosted on its cloud platform, on an annual, semi-annual, monthly, or quarterly subscription model.
Key Numbers
For fiscal 2021, ESDS Software reported a net profit of ₹54.8 million versus ₹935 million a year ago. Revenue stood at ₹1.71 billion against ₹1.58 billion a year ago.
One of the biggest risks faced by the cloud computing industry is malware infections and data breaches as companies are becoming subject to a wide variety of attacks on their networks.
Late last year, Indian markets witnessed a rise in cyberattacks on vaccine makers and hospitals. While ESDS Software aims to provide customers a high level of security, it continues to face security threats and attacks from hackers. A security breach could adversely impact the company’s systems, creating disruption or slowdown that might harm its financials and reputation.