ESDS Software Solutions Ltd is preparing to launch an initial public offering (IPO) in the coming weeks, potentially marking its position as India's first listed data centre operator. The company, based in Nashik, has reportedly increased the size of its fresh issue to ₹720 crore from an initial target of ₹600 crore.
This decision to expand the IPO size stemmed from positive indications of demand for digital infrastructure assets during discussions with institutional investors in the pre-marketing phase.
In March 2025, ESDS filed preliminary IPO documents with the Securities and Exchange Board of India (Sebi), initially considering a pre-listing fundraise of ₹120 crore, which could have reduced the fresh issue size. It remains unclear if this pre-IPO funding has been secured.
After receiving clearance from the markets regulator in December 2025, ESDS postponed its share sale due to market volatility. The company is now targeting an IPO launch within four to six weeks.
Market Context
The upcoming IPO follows the recent decision by Sify Infinit Spaces Ltd to halt its ₹3,700 crore data centre IPO due to unfavorable market conditions. This withdrawal has limited options for investors interested in equity within the Indian data centre sector, which also includes major unlisted players like Yotta, CtrlS, CYFuture, WebWerks, and Nxtra by Airtel.
According to market observers, the cancellation of Sify's offering has shifted supply dynamics in the data centre space, allowing ESDS to increase its IPO size as institutional investors seek entry points into this sector.
Growth Drivers
Surging demand for AI-ready infrastructure is driving capital needs for data centre operators, compelling them to seek larger funding pools for expansion. The rapid adoption of data-heavy platforms, along with government initiatives like the Digital India Mission, is prompting many firms to explore public markets.
ESDS's draft IPO document identifies E2E Networks Ltd as a listed peer for comparison. However, while E2E does not own the physical data centres it operates, ESDS owns and operates its own network of Tier III-certified data centres across various cities, including Nashik, Navi Mumbai, Bengaluru, and Mohali.
Founded in 2005 and led by CEO Piyush Somani, ESDS provides a range of IT infrastructure services, including cloud computing, co-location, software-as-a-service (SaaS), and managed services.
Financial Performance
In the fiscal year 2024-2025 (FY25), ESDS reported a revenue growth of approximately 26%, reaching ₹361 crore, with operating margins improving to around 43% from nearly 35% in FY24. This growth was primarily driven by new client acquisitions and increased spending from existing clients, supported by bundled service offerings.
Industry Landscape
India's data centre industry has been expanding at an annual rate of 25.47% from 2021 to 2025, making it one of the fastest-growing sectors in the Asia-Pacific region. However, it is still in the early stages compared to global leaders, with the US having a built capacity nearly 18 times greater than India, and China's capacity approximately 3.5 times larger.
