ESDS Unlisted Shares

Founded in 2005 by first generation entrepreneur Piyush Somani, ESDS was initially conceived as an Outsourced Hosting Support company Later it transformed into a web hosting business in the US and UK. Since then, ESDS has moved from strength to strength, establishing a huge clientele worldwide. In a relatively short period of existence, innovative & disruptive solutions has put the Company in the league of competitors like AWS, Microsoft Azure, CtrlS, Sify, Alibaba, Netmagic, NextGen and Rackspace.

ESDS has expertise in Managed Data Center Services, Cloud Solutions and Disaster Recovery Hosting. All ESDS Services are backed with exuberant Technical Support helping ESDS in strengthening its relationship with customers. It has established a strong presence in almost every industry vertical – BFSI, Healthcare, Education, Energy & Utilities, Agriculture, Manufacturing, IT, Entertainment & Media, Travel & Tourism, Telecom, Government and eCommerce.

Presently it has its footprint in 19 nations across APAC, Europe, Middle East, the Americas, and Africa.

Special Achievements of ESDS
a. 1st Indian Cloud Company to have Vertical Auto-Scaling Patent.
b. 1st Commercial Datacenter to have an active Uptime Tier III Certificate.
c. 1st Indian Cloud Company to have a Patent in Cloud & Infrastructure Hosting Space.
d. India’s Only Cloud & Data Center Company to have 50+ R&D engineers.

The Business Model of ESDS can be broadly divided in two categories.
a. Managed Cloud Hosting
b. Managed Data Centre

Products and Services of ESDS
a. eNlight Cloud is a Software Solution to convert CAPEX into OPEX by eliminating expensive hardware cost, maintenance cost and obsoleting of traditional IT infrastructure into cloud computing.

eNlight Cloud is India’s first and only cloud computing platform patented from USPTO (Patent no. 9176788) and UK (Patent No. : GB2493812) for “Method and system for Real Time Detection Of Resource Requirement And Automatic Adjustments”.
It is state-of-the-art cloud hosting solution with built-in ability to automatically scale CPU and RAM on-demand without any human intervention or downtime. The auto-scalable feature of eNlight has succeeded in eliminating the downtime which is generally seen as a result of volatile internet traffic. Thus feature also makes eNlight an unsurpassed proposition for Disaster Recovery hosting with cost saving of up to 70%.

b. eNight-360

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c. Data centre services
ESDS provides dedicated hosting service or managed hosting service for Internet hosting in which the client leases an entire server instead of sharing. It also provides services such as Colocation services, Static VM/VP hosting and disaster recovery hosting.

Data Centres of ESDS
(i) Nashik Data Center -Phase 1 – 100% occupied
(ii) Mumbai Data Center – Phase 1- 100% occupied
(iii) Bangalore Data Center – 10% occupied
(iv) Nashik Data Center – Phase 2 – 3% occupied

Soon new data centres are coming at Bahrain and other places in India.

d. E-magic DCIM
eMagic DCIM is a highly integrated and composite solution that provides a single console for management of Data Center operations. It facilitates streamlining of administration process, leading to optimization of functional operations.
eMagic DCIM is a highly regarded Enterprise Data Center Management Solution, which is currently installed and successfully running on-site operation for customers like Reliance Capital, ABB Group, CDSL, Satara DCCB and some new acquisitions like the DCB Bank.

Clients of ESDS
a. Provides complete managed hosting for CBS, ATM Card Solution, Mobile Banking, Net Banking, IMPS, UPI Payments, Bharat Billpay, etc. ESDS currently hosts more than 220 co-operative Banks on eNlight Cloud hosting platform and more than 350 websites of nationalized PSU.
b. ESDS has emerged as one of the top players in past 12 months for hosting SAP HANA deployment of some of the large Enterprises and well known brands in India. More than 50% of the SAP HANA hosting on Cloud have been won by ESDS in India in last 1 year.
c. Some of the largest matrimonial portals in India, eCommerce portals and all the major initiatives taken by the PMO like the MUDRA Bank, Startup India and Standup India have all been designed, developed and hosted by ESDS on the eNlight Cloud platform.

Under Mudra Scheme, 200M loan disbursed by Government of India from ESDS platform.

Why ESDS?
a. India’s Most Trusted Cloud Service Provider
b. Provide most innovative technologies.
c. ESDS provides a wide range of products and services. eNlight 360°, eMagic are products, while iPAS & VTMScan are the SaaS offerings of ESDS
d. ESDS is trusted by customers across all verticals. ESDS is proud to serve customers of different industries ranging from Banks, Government, IT, Telecommunication, Defense, Manufacturing and others

Mission for 2024 for ESDS
a. By 2024, ESDS will connect 1 Billion devices across India for enhanced functionability and connectivity.
b. 380+ banking customers would be connected.
c. 150k POS devices to be connected.
d. 25k ATM Machines to be connected.
e. 900K Card Transactions to be completed.
f. 30+ Smart Cities + IoT projects ~2M devices to be connected in this.

Company Investor Presentation

ESDS Unlisted Shares Details:

Total Available Shares:	1000
Face Value:	₹ 1 Per Equity Share
ISIN:	INE0DRI01029
Lot Size:	100 Shares
Current Unlisted Share Price:	₹ 235 Per Equity Share

Promoters And Management:

a. Piyush Somani, CEO He is a first generation Entrepreneur and started ESDS Software at the age of 23 with a single computer. He used this computer to start Outsourced Hosting support Business and in the process became passionate to serve customers and worked 18x7 as a System Administrator initially to keep his customers happy. It his dream to have 1 Billion people connected to their Cloud services. Today ESDS serve more than 40,000 customers hosting more than 3 Million digital assets for them. b. Sandeep A Mehta, CFO He is a CA by profession, and MBA in Finance from USA. He has over 21+ years of experience professional with a blend of capabilities to reach Strategic Business insights plan and operationally execute. Demonstrated abilities through leadership and cross functional proficiency. Managed Business Operations with a Span of control ~ Rs 11000 crs (~$ 3 billion) per annum on all key parameters of Revenue, Products, S&D and Operations. c. Dr. Rajeev Papneja, Chief Growth Officer and Technology He has more than 24 years of working experience in various organisations such as EY, NJ, Pfizer, etc and from the last 10 years he is spear heading the ESDS growth.

Financials of ESDS Unlisted Shares:

Particulars (in Cr)	2017	2018	2019	2020	2021	2022	2023
Sales	71	99	140	165	171	195	207
Purchases of Stock-in-Trade	7.9	16	0.32	4	0	0	0
Employee Benefits Expense	20	22	27	48	59	70	77
Other Expenses	26	30	64	68	51	65	83
Operating Profit	18	30	48	44	61	58	47
OPM %	25.35%	30.30%	34.29%	26.67%	35.67%	29.74%	22.71%
Other Income	1.5	2.4	1.96	1.74	3.2	3.3	0.46
Interest	3	4	7	6	17	17	25
Depreciation	8	13	15	28	3	42	50
Profit before tax	8	14	28	10	8.7	-2	-27
Total Tax Exps	2.6	4.89	7.11	4.64	3.2	0.5	-0.52
Net Profit	5	9	20	6	5.4	-2.6	-22
NPM %	7.50%	9.39%	14.58%	3.51%	3.10%	-1.33%	-10.63%
No. of shares	8.34	8.34	8.34	8.34	8.34	9.15	9.28
EPS in Rs	0.64	1.21	2.45	0.69	0.32	-0.28	-2.37

ESDS Unlisted Share Fy22-23 Review 1. Revenue and Operational Costs While the revenue saw a moderate increase from INR 195 crores in FY 2022 to INR 205 crores in FY 2023, the operational costs have surged significantly. Employee benefit expenses alone rose by INR 7 crores, and other operational expenses increased by INR 18 crores. This increment in operational costs has resulted in a 7% dip in EBITDA margins, a significant pressure point for the company. 2. Debt and Interest Costs The company's total debt has escalated to approximately INR 136 crores in FY 2023, from INR 110 crores in the previous fiscal year. Subsequently, the interest cost has also surged from INR 17 crores to INR 25 crores, raising concerns about the company's debt management. 3. Silver Lining Despite the operational challenges, the company managed to generate cash from operations of approximately INR 54 crores, an increase from INR 31 crores in FY 2022. This uptick is primarily due to high Depreciation and Amortization (D&A) which is a non-cash item, suggesting underlying operational strength. 4. New Launches and Customer Relationships ESDS has expanded its footprint by launching new Data Centres in Mohali and has plans for one in Navi Mumbai in H1FY24. The company has also strengthened its relationship with existing customers like L&T, EDF, and Tech Mahindra, who have scaled up their businesses significantly with ESDS. 5. Revenue Recognition and New Orders Several new projects and contracts have been bagged, projecting a promising revenue stream for the upcoming fiscal years. The Mohali Data Centre alone has secured an order worth INR 25.40 crores, indicating robust revenue recognition in the near future. ESDS Unlisted Share Annual Report 2022 Update 1. There is an increase in 14% revenue in FY22 as compared to Fy21. However, the last 5 years CAGR from 2017 to 2021 was 25%. So, muted growth in Fy22. 2. Despite increase in revenue the operating profit is down by 5% in Fy22 as compared to Fy21. 3. ESDS unlisted share has posted a loss of 2.60 Crores in Fy22 from a profit of 5.40 Crores in Fy21. 4.ESDS despite posting losses has made a cash flow from operations of 26 Crores, because they have 42 Crores of depreciation on assets. 5. Free cash flow is negative as in FY22 they have done a capex of 60 Crores, and cash flow from operations is just 26 Crores. So, to fund that capex, they have raised funds via following ways a) 20 Crores from preference shares b) 30 Crores from NCDs c) Increased current borrowing by 42 Crores. So, in net they have raised ~75 Crores from financing in Fy22. 6. Trade receivables have gone up from 46 Crores in Fy21 to 63 Crores in Fy22. Poor results posted by ESDS Unlisted share in Financial year 2022. Valuation of ESDS Unlisted Share The total share outstanding after the conversion of preference shares as on 31.03.2023 are ~9.28 Crores. At CMP of 250, the Mcap or valuation comes out to be ~2200 Crores which looks on higher side. ESDS Annual Report 2023 ESDS DRHP ESDS Annual Report 2022 ESDS Annual Report 2021 ESDS Annual Report 2020 ESDS Annual Report 2019 ESDS Annual Report 2018 ESDS Annual Report 2017

Frequently Asked Questions:

Please find below the procedure for buying ESDS Unlisted Shares at UnlistedZone.

1. You confirm booking of ESDS Unlisted Shares with us at a trading price.
2. You provide your client master report (ask the broker if not available) along with PAN Card and Cancelled Cheque in case you are not transferring funds from the bank account as mentioned in the CMR Copy. These are KYC documents required as per SEBI regulations.
3. We will provide the bank details.
4. You need to transfer funds in that account.
5. Payment has to be done in RTGS/NEFT/IMPS CHEQUE TRANSFER. No CASH DEPOSIT.
6. Payment has to be done from the same account in which shares are to be credited.
7. We will transfer the shares in 24 hours if funds are credited before 2 pm.

Important Note: Please note that the lock-in period for selling ESDS Unlisted Shares is 6 months after listing. Hence you can’t sell ESDS Unlisted Shares which you bought in Pre-IPO for 6 months after its listing. i.e. You can sell it only after 6 months calculated from the listing date. For any queries, please contact us at sales@unlistedzone.com

Please find below the procedure for selling ESDS Unlisted Shares at UnlistedZone.

1. We will confirm our buying price of ESDS Unlisted Shares.
2. We will give you our client master report and you will transfer the ESDS Unlisted Shares to our demat account.
3. We will ask for bank details of yours once the ESDS Unlisted Shares are received in our demat account..
4. We will transfer the funds in your bank account within 24 hrs of receiving the ESDS Unlisted Shares.
5. Payment will be made in RTGS / NEFT / CHEQUE TRANSFER/IMPS. No CASH DEPOSIT.
6. Payment will be given in the same account which is linked to demat account or you need to provide the cancelled cheque shows your name to verify. As per SEBI regulations, the transfer of funds in the third party account is not legal and our policy refrain us from doing so.

Note: The price at which we are buying the share is fixed for 3 days. If you cant sell your stock within 3 days, then the price of that day will be applicable when we receive shares in our demat.

Lock-in period of ESDS Unlisted Shares depends upon category of investors.

1. Venture Capital Funds or Foreign Venture Capital Investor - lock-in Period of 6 months from the date of acquisition of ESDS Unlisted Shares.
2. AIF-II - There is no locking period.
3. Other Investors (include Retail, HNIs or Body Corporate) lock-in Period of 6 months from the date of listing of IPO of ESDS Unlisted Shares.

This new SEBI rule was introduced in the month of August-2021, wherein the SEBI has reduced the lock-in period previously from 1 year to 6 months to encourage more and more funds to be invested in startups which are going to public or IPO in near future. Reduction of lock-in is seen as big step and after that many PMS funds are advising their clients to invest in Pre-IPO shares to get the benefit of early stage investment.

DIS - Delivery Instruction Slip is the way through which an investor can sell or transfer the ESDS Unlisted Shares from his/her demat account to any other demat account. There are two Types of DIS Slip.

1. Offline-DIS - This is an offline mode of transfer of shares wherein the investors needs to fill DIS form and give it to their broker for transferring the shares. Following are the fields which are required to be filled.
- a. ISIN number of ESDS Unlisted Shares.
- b. Name of ESDS Unlisted Shares
- c. Quantity of ESDS Unlisted Shares
- d. Cosideration Amount
- e. Target DP ID and Client ID
- f. Annexure
2. Online DIS - Some of the broker these days gives facility of transferring the ESDS Unlisted Shares via online DIS. So, please check with your broker whether such facility is available or not. For example: Angel Broking proivdes the facility of Online-DIS from its platform. As an investor he/she simply needs to add a beneficiary into it and send the ESDS Unlisted Shares by filling the details similar to Ofline-DIS.

Read our article to understand more about this. https://unlistedzone.com/how-do-i-sell-my-unlisted-shares/

In the last 4-5 years, the unlisted share market has become quite big and as a result of that, the ticket size has reduced from usual 5-10 Lac to 35-50k in today's scenario. So, via our UnlistedZone platform, if somebody wants to buy ESDS Unlisted Shares then minimum investment would be 35-50k.

Yes, buying and selling of unlisted shares in India is 100% legal.

If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on unlisted shares. Short-Term Capital Gain is added in your Income. So, as per individual tax slab you need to pay capital gain tax.

If you sell your shares after 2 years, then you will have to pay Long-term Capital gain on unlisted shares LTCG is 20% with indexation benefits.

After listing of shares, the unlisted shares which you have bought through unlisted market, will be taxed at listed rates, if sold through exchange. So, taxes of listed market will be applicable. And, to calculate holding time, for determining LTCG or STCG, the purchase date of unlisted shares will be applicable.

If you buy ESDS Unlisted Shares from UnlistedZone then these shares can checked in two ways. However, before we tell you the process of checking of shares, it is intimated that as per SEBI regulations, the shares can be transferred in demat account only.

Check credit of ESDS Unlisted Shares Instantly?

1.You can download the NSDL or CDSL application from google play-store and check. If you want to check whether your stock broker is registered with NSDL or CDSL then check the following procedure.
By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Demat Account = DP ID + Client ID. (16 Characters )
"DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL.By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL.
Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio.
In CDSL, all these characters are numbers (1234567891234567) first 8 digits are DP ID and next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country that you are from (IN12345678912345), then 6 unique digits for Broker and next 8 digits are client ID.
Example:
CDSL = 12345678(DP ID) and 91234567(Client ID).
NSDL = IN123456 (DP ID) and 78912345(Client ID).
Check in brokers application?
Credit of ESDS Unlisted Shares can be checked in brokers application as well but it takes T+2 days to show the shares.

The ESDS Unlisted Shares are credited in demat account same day of transferring funds in our company's bank account.

The price of ESDS Unlisted Shares can be checked in two ways. First, you can join our telegram channel where on daily basis we share the latest prices of all the unlisted shares in the morning and secondly, you can register on UnlistedZone.live platform to see the historical graphs and prices of all the shares at one place.

If you see the thesis of investment in the unlisted shares then it is being done mainly to take the advantage of IPO market. And, if the IPO plans of company get delayed due to market conditions or any other reason then demand suddenly drops in the market. The unlisted market works mainly on demand and supply and if there is no IPO news then getting exit would be difficult.

"UnlistedZone is India's fastest and leading marketplace to buy and sell unlisted shares. In the last 3 years, we have already served more than 1 million users on the platform. The total transactions value done from the platform is already more than 100 Crores. The name of our Co-founders Mr. Umesh Paliwal and Dinesh Gupta publish regularly in leading newspapers like MoneyControl, Business-Standard, ET etc for their views on IPO and Unlisted market. In the last 3 years, UnlistedZone has made a good name for itself in the industry and gained a trust of their users. So, the new investors should not be worried about any kind of fraud that is mostly happens with unkown brokers in the market while doing investment with UnlistedZone."

We at UnlistedZone do the valuation based on 2 methods.

1. We check the last funding that is being done in the ESDS Unlisted Shares to ascertain the benchmark valuation.
2. If there is no funding happened in the company, then we try to find a business similar to ESDS Unlisted Shares in the listed space and do comparison method to ascertain the valuation.

As an investor in the unlisted space, we would always recommend that you must check all the risk parameter carefully before investing in the unlisted space.

We source shares either from the employees or initial investors looking to liquidate their ESDS Unlisted Shares.

Pre-IPO shares means which are planning for an IPO in near future. So, all the shares which are traded on the platform are not Pre-IPO Shares. However, if the company's business is going good and then demand will always be there in the unlisted space, so even if the IPO does not come, the investors can easily liquidate their ESDS Unlisted Shares in the unlisted market itself.

Rules and regulations of SEBI are applicable in the Unlisted space like lock-in period of 6 months, paying of Stamp Duty, and DP Charges for every transaction etc. However, to become an unlisted broker there is no such regulation by SEBI as of yet.

For tracking news and other information about ESDS Unlisted Shares, one can visit our website wherein we post news and other information on daily basis and one can also join our telegram channel.

Discussion on ESDS Unlisted Shares:

2 Comments

Umesh Paliwal

2:31 AM, 10 August 2021

GEF Capital Partners invested in ESDS.

https://www.business-standard.com/article/news-ani/gef-capital-partners-to-be-the-catalyst-for-esds-growth-ambitions-118060500691_1.html

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Umesh Paliwal

2:06 AM, 10 August 2021

1. Founded in 2005 by the first generation entrepreneur Piyush Somani, ESDS is one of India’s leading Managed Hybrid Cloud Service Providers having multiple global patents for vertical autoscaling technology which is only available in its eNlight Cloud platform.

2. ESDS is the only company in India to host more than 282 Banks and NBFCs on its Banking Community Cloud,over 80+ government organizations on its Govt Community Cloud and 70+ Indian enterprises like TATA Metaliks, TATA Capital, Symphony, Embassy, KFC, Pizza Hut, ATOS, MASTEK, ZENSAR, DXC, L&T and many more on its Enterprise Community Cloud. Exuberant Support from ESDS for all its Cloud offerings are unmatched in the Industry.

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