How IPO advisory helped a Cloud and Data center provider to successfully launch its IPO of INR 322 crore.
Background and Challenge
- Leading Service Provider in the area of Managed Cloud Hosting and Managed Data Center Services in India. It was one of the first companies to offer a true ‘Make In India’ cloud in the nation in 2011.
- The client serves various customers of real estate, pharmaceuticals, retail and education and in several countries across the APAC region, Europe, Middle East, the Americas and Africa.
Challenges Faced by Client:
- Limited understanding of the demand side ecosystem: The Client wanted to understand the Demand Sector Analysis, including adoption, geographic expansion, emergence of new trends and Government Initiatives bolstering demand and contacted Ken Research and Strategy Advisory to understand how the market is positioned in the country.
- Evaluate the companies positioning into the market : In addition, the client wanted assistance in mapping the market and positioning ESDS in the competitive landscape, hence they outsourced this activity to Ken Research.
Data Centre Industry at Glance:
- India had 658 million internet subscribers in January 2022 which is driving the data storage needs and contributes towards the high demand for data center facilities from Telecom and IT industry in these countries.
- The India data center market is witnessing significant investment from local and global investors, including hyperscale operators, driven by increased digitalization as a result of COVID-19, government initiatives, and the adoption of AI, IoT, and big data
Approach and Recommendations
Phase 1: To identify top sub segments and their future prospects
- Ken collaborated with its client to understand the Market size of each of the market segments with a bottom-up analysis
- Ken Research’s team has also assessed the various sub segments and their future prospects to assess the overall market for the DRHP filing.
- In-depth and detailed discussions were carried out with the top decision making authorities.
- These discussions gave the client possible opportunity windows to know-how the Opportunities for Data center industry.
Phase 2: Key Analysis of Value chain demand side ecosystem
- The second phase of work focused on demand side developments, with the supply side strengths of ESDS, for estimating the future prospects and compiling the same for prospective shareholders.
- The study included deep dive analysis on the parameters including recent trends, technology, Value chain analysis and working model of the data centres.
- This helped the clients to evaluate total market size and demand side ecosystem of the industry and the opportunity in each of the verticals with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Phase 3: Quality Recommendations and advisory for the client
- After identifying and analyzing the multiple demand drivers, Trends and challenges Ken provided phase wise plan and constructive strategies to the client to leverage its competitive advantages position itself in the industry.
- Providing detailed case study on best practices adopted by top players in the market.
- Ken has been successful in helping the client to understand the rapidly evolving demand and identify the ripe opportunities in the near to medium term.
Result and Conclusion
SEBI approval with a green-flag for IPO filing
The client was successfully able to curate a DRHP with our support, which was swiftly approved by SEBI with a green-flag for IPO filing.
Understanding of Market Attractiveness across Segments
Ken Research provided the client with the existing opportunity as well as the future growth potential of various segment. This will help the client in strategizing their business expansion plans.
Valuable Insights on Positioning Client in the Market
- The competition-specific market assessment that enables the Client to substantially develop their understanding about Market and position itself in the competitive landscape.
IPO listing on NSE