Bumper debut! ESDS Software shares list at 76% premium over IPO price

ESDS Software share price: The shares of sovereign cloud & AI infrastructure company ESDS Software Solution listed at a solid premium of 76 per cent on Friday, September 4, beating market expectations.

 

ESDS Software's share price listed at ₹757 apiece on the National Stock Exchange (NSE) as against the offer price of ₹429, a premium of 76.46 per cent. Meanwhile, on the BSE, the stock opened 73.96 per cent higher at ₹746.30.

 

Ahead of the listing, ESDS Software Solution's grey market premium (GMP) was ₹244 or 56.88 per cent, suggesting a listing price of ₹673. 

Shivani Nyati, Head of Wealth at Swastika Investmart, said ESDS Software Solution listing surpassed the brokerage's bullish expectations. 

 

 

"Rising demand for cloud computing, data-centre infrastructure, cybersecurity and digitalisation in India provides a favourable structural growth opportunity for ESDS over the long term — supporting a constructive medium-to-long-term view even after this listing pop," she added. 

 

However, given the scale of the listing-day gain, some near-term profit-taking is likely as valuations have run ahead of fundamentals. Therefore, she advised existing allottees to consider booking partial profits at current levels and maintaining a stop-loss around ₹650–680 on the remaining holding. "Investors without allotment would be better served awaiting a pullback toward ₹600–650 before evaluating a fresh entry."

 

ESDS Software Solution IPO details

The company's initial public offer (IPO) was available for bidding from August 28 to September 1, garnering a bumper response from investors.

 

The offer received bids for 1.67 billion shares as against 12.35 million shares on offer, according to NSE data, resulting in 135.88 times subscription. The qualified institutional buyer (QIB) quota was booked the most at 261.51 times, followed by the non-institutional investor (NII) segment, which received 192.94 times subscription. Finally, the retail portion was subscribed 39.64 times.

 

The ₹720-crore offer was entirely a fresh issue of shares, meaning all proceeds would be received by the company. The funds raised are proposed to be utilised for purchase and installation of cloud computing and other equipment and infrastructure for data centres, along with general corporate purposes.

 

ESDS Software Solution IPO price band was fixed at ₹408 to ₹429 per share. The minimum lot size for an application was 34 shares.

 

The company offers a comprehensive platform of cloud infrastructure and software solutions, which includes infrastructure as a service (IaaS), managed solutions, and software as a service (SaaS). In FY2026, the company served more than 2,500 customers and generated 100% of its revenue from its technology and cloud-related operations.

 

Financially, the company has delivered strong FY24-26 revenue, Ebitda and PAT CAGR of 28.4 per cent, 51.6 per cent, and 186.9 per cent, respectively, supported by operating leverage and an improving business mix. Ebitda margin expanded significantly from 35.6 per cent in FY24 to 49.6 per cent in FY26. 

Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.