SEBI has approved the IPO proposal of ESDS Software Solutions, allowing the company to move ahead with its planned public issue worth around ₹720 crore. This approval marks an important regulatory step for the cloud and data centre services provider as it prepares for a stock market listing.

The IPO is expected to include a fresh issue of shares along with an offer for sale by existing investors. As per the draft papers, the company plans to use the funds mainly for debt repayment, capital expenditure, and general business needs. These steps indicate a focus on strengthening financial stability ahead of listing.

The approval also comes at a time when SEBI is paying closer attention to IPO disclosures and due diligence. In recent public statements, the regulator has highlighted the need for accurate projections, proper verification of financial details, and clear documentation of capital and working capital requirements. Merchant bankers have been reminded of their responsibility to ensure transparency and reliability in offer documents.

For ESDS, the next steps will involve finalising the issue size, price band, and timeline based on market conditions. Investors in the unlisted market are also closely tracking developments, as clarity on the IPO process often impacts ESDS share price expectations before listing.

Overall, SEBI’s clearance moves ESDS Software Solutions closer to the market, but the final response will depend on valuation, disclosures, and broader investor sentiment at the time of launch.

How do you see the demand shaping up for this IPO once the company announces its pricing details?

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