ESDS to expand data centre operations with Rs 720-cr IPO proceeds

Mumbai-based ESDS Software Solution plans to utilize the funds from its upcoming ₹720-crore initial public offering (IPO) to expand its data center presence and venture globally into Europe and Southeast Asia. The Nashik-based firm, set to become India's first listed data center operator, aims to allocate ₹576 crore from the IPO for procuring GPUs, servers, storage, networking gear, and related data center infrastructure, according to managing director Piyush Somani.

ESDS will be joining cloud rivals Yotta Data Services and Sify Infinit Spaces in their upcoming listings. ST Telemedia Global Data Centres (STT GDC) is also rumored to be pursuing a listing this year. On Tuesday, the company announced its IPO price band of ₹408-429 per share for the ₹720-crore public offering, valuing the firm at up to ₹5,028 crore.

The IPO, which will be a wholly new issue without any offer-for-sale element, will begin subscriptions on August 28 and conclude on September 1, with anchor investors able to bid on August 27. ESDS recently inked a five-year $1.25 billion agreement with an Australia-based AI neocloud provider to set up a dedicated artificial intelligence cluster equipped with 8,208 NVIDIA B300 GPUs.

Revenues from this deal are expected to commence in the third quarter of FY27. Presently, ESDS operates five data centers in Nashik, Navi Mumbai, Bengaluru, Mohali, and Noida, and intends to leverage IPO proceeds to establish additional facilities in Kolkata and Sahibabad.