Esconet Technologie IPO: Files DRHP For IPO

Esconet Technologies Limited, a technology firm based in New Delhi, has initiated the process to get listed on the NSE. Recently, the company submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The planned initial public offering includes the issuance of 33,60,000 equity shares, each having a face value of ₹10.

IPO Details & Company Overview

Esconet seeks to generate funds through its IPO, with Corporate Capital Ventures serving as the book running lead manager and Skyline Financial Services as the registrar. The company aims to allocate ₹16 crores from the IPO funds for long-term working capital requirements. Furthermore, it plans to invest ₹2.5 crore in its wholly-owned subsidiary, ZeaCloud Services Private Limited, to bolster infrastructure by acquiring more hardware and software.

Esconet serves as both an IT solutions provider and a manufacturer of advanced technology products, including high-performance supercomputers, data servers, and workstations. Their leading brand, HexaData, focuses on top-tier servers, workstations, and storage systems, actively contributing to the "Made in India" initiative. Through a strategic alliance with NVIDIA, Esconet has expanded its footprint in the fields of Artificial Intelligence (AI) and Machine Learning (ML), elevating the capabilities of its workstations and servers.

Established in 2012 by Santosh Kumar Agrawal and Sunil Kumar Agrawal, Esconet has grown to become a key player in the IT solutions industry. The founders, second-generation entrepreneurs, have focused on collaboration to provide innovative and robust IT solutions.

Esconet revealed a revenue of ₹71.46 crore with a net profit (PAT) of ₹3.05 crore in the first half of the current fiscal year, ending on 30 September 2023. In the preceding fiscal year 2022-23, it recorded a revenue of ₹96.90 crore and a PAT of ₹3.18 crore. The company stated that a portion of its revenue in the last three years came from government projects.

Esconet Technologie Clientele

Esconet boasts partnerships with renowned international technology companies, including AMD, Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, Nutanix, NVIDIA, Sophos, Suse One, Trend Micro, and Veeam. The company's esteemed clientele includes the Ministry of Defence, Engineers India Limited, Bharat Electronics Limited, ONGC, National Informatics Centre Services Inc (MeitY), and IIT, among others.

Final words

Esconet Technologies Limited's path to NSE listing highlights its dedication to innovation and expansion in IT solutions and manufacturing, and the distribution of IPO funds and investments highlights the company's commitment to fortifying its market position.