Esconet Technologies files DRHP, to be listed on NSE Emerge

Mumbai, Jan 02: Esconet Technologies Limited (The company), a leading homegrown integrated IT solutions company, has filed its Draft Red Herring Prospectus (DRHP) with NSE Emerge. The company’s initial public offering comprises a fresh issuance of 33,60,000 Equity Shares, each with a face value of Rs. 10. Corporate Capital Ventures has been appointed as the Book Running Lead Manager for the issue while Skyline Financial Services is the Registrar.

The New Delhi-headquartered company manufactures high-performance supercomputers, data servers and workstations, besides providing a comprehensive range of IT solutions to SMEs, large organizations, and public sector clients, including data storage, networks, security, virtualization, and data protection. Recognizing the burgeoning demand in the Indian market, Esconet introduced its brand, HexaData, specializing in high-end Servers, Workstations, and storage systems through the Make in India initiative. Furthermore, Esconet's strategic collaboration with NVIDIA has propelled remarkable growth in the AI and ML domain, enhancing their servers and workstations.

According to the DRHP document, Esconet proposes to utilize Rs. 16 crore of the IPO proceeds towards funding its long-term working capital requirements, besides investing Rs. 2.5 crore in its wholly-owned subsidiary, ZeaCloud Services Private Limited, to reinforce its infrastructure by acquiring additional hardware and software, with a goal of bolstering capacity, elevating security measures, and enhancing overall monitoring capabilities.

ZeaCloud offers an extensive range of cloud and managed services, including Private and Public Cloud services, Backup-as-a-Service (BaaS), Disaster Recovery-as-a-Service (DRaas) and Desktop-as-a-Service (DaaS). ZeaCloud operates its data centers in Noida and Mumbai. The company is embarking on a transformative roadmap by integrating cutting-edge Object Storage into its infrastructure to bolster the immediate customer onboarding capabilities. Apart from fortifying the backup capabilities, this will establish ZeaCloud as a leading provider of advanced and versatile Object Storage solutions to its clientele.

Founded in 2012 by second-generation entrepreneurs Santosh Kumar Agrawal and Sunil Kumar Agrawal, Esconet has been forging fruitful partnerships to deliver innovative and resilient IT solutions. The company counts renowned global technology firms - AMD, Amazon Web Services, Cisco, Dell Technologies, HP Enterprises, Intel, Microsoft, Nutanix, NVIDIA, Sophos, Suse One, Trend Micro, and Veeam, among its technology partners. Its prestigious clientele includes the Ministry of Defence, National Informatics Centre (MeitY), National Informatics Centre Services Inc (MeitY), IIT, Bharat Electronics Limited, ONGC, Engineers India Limited and many others.

As per the restated consolidated financial statements, Esconet achieved a robust revenue of Rs. 71.46 crore and earned a profit (PAT) of Rs. 3.05 crore during the first half of the current fiscal year, which ended September 30, 2023, compared to a revenue of Rs. 96.90 crore and a profit (PAT) of Rs. 3.18 crore in FY 2022-23. A significant portion of the company’s revenue in the last three years was generated from Government projects.

The company has received crucial certifications such as ISO 9001:2015 for Quality Management System, ISO/IEC 27001:2022 for Information Security Management Systems, ISO/IEC 20000-1:2018 for Information Technology Service Management, and ISO 14001:2015 for Environmental Management Systems, demonstrating its dedication to quality and security.