ESDS Software Solutions Ltd is preparing to launch an initial public offering (IPO) in the coming weeks, targeting ₹720 crore in fresh issue size, up from an initial target of ₹600 crore. According to reports from Mint, the decision to expand the fresh issue followed discussions with institutional investors during the pre-marketing phase, where the company received indications of demand for digital infrastructure assets. The Nashik-based company's preliminary IPO papers filed with the Securities and Exchange Board of India (Sebi) in March 2025 had originally considered a pre-listing fundraise of ₹120 crore, which would have proportionately reduced the fresh issue size.
The markets regulator issued its observations and granted clearance for the IPO in December 2025, but the company deferred the share sale amid volatile markets and is now targeting an IPO launch within four to six weeks. As reported by Mint, the potential public listing comes weeks after Sify Infinit Spaces decided to put its planned ₹3,700-crore data centre IPO on hold amid weak market conditions. The withdrawal of Sify's offering reduced options for investors in the Indian data centre industry, which includes major unlisted players like IPO-bound Yotta and CtrlS, as well as CYFuture, WebWerks and Nxtra by Airtel.
In fiscal 2024-2025 (FY25), ESDS reported revenue growth of around 26% to ₹361 crore, while its operating margin improved to around 43% from nearly 35% in FY24. According to Mint, revenue growth was driven primarily by onboarding new clients and higher spending from existing ones, supported by bundled service offerings. The improvement in operating margin was largely due to the significant absorption of fixed expenses on a high revenue base.
India's data centre industry has expanded at 25.47% annually from 2021 to 2025, and currently ranks among the fastest growing by capacity in the Asia-Pacific region, according to an October 2025 joint report by Lattice Technologies and Cushman & Wakefield India. However, as reported by Mint, India's data centre industry is still at an early stage compared to global leaders, with the US having built capacity nearly 18 times greater than that of India, while China's is around 3.5 times larger. The company aims to use the funds raised from the fresh issue to purchase and install cloud computing and other equipment and infrastructure for its data centres, with a portion allocated toward meeting working capital requirements and general corporate purposes.
According to Mint, surging demand for AI-ready infrastructure is sharply raising capital needs, pushing operators to seek larger pools of capital for growth. The business model for data centres is notoriously capital-intensive, with IPOs increasingly serving as effective methods for these businesses to quickly raise necessary capital to expand domestic footprints. ESDS aims to use the funds raised from the fresh issue to purchase and install cloud computing and other equipment and infrastructure for its data centres, with a portion allocated toward meeting working capital requirements and general corporate purposes.
