ESDS IPO: 75% Listing Gain Expected, Brokerages Advise Buy
By ThePip Desk
ESDS Software Solution’s ₹720 crore IPO opens Aug 28. Grey Market Premium suggests a 75.76% listing gain. Brokerages recommend long-term subscription.
ESDS Software Solution’s IPO is set to raise ₹720 crore, with a Grey Market Premium (GMP) hinting at a substantial 75.76% listing premium. The offering is scheduled from August 28 to September 1, 2026.
Key Offering Details
- IPO Price Band: ₹408–₹429 per share
- Potential Listing Price (via GMP): ₹754
- Fresh Issue Amount for Equipment: ₹576 crore
- Listing Exchanges: BSE and NSE on September 4
Brokerages including Kantilal Chhaganlal Securities, Swastika Investmart, and Beacon Capital Advisors Pvt. Ltd. have recommended subscribing for the long term. They cite the company’s strong growth outlook despite a premium valuation.
Why Brokerages Recommend
- Significant Profit Expansion: Nearly nine-fold PAT growth in two years
- Differentiated Offerings: Full-stack cloud, data-center, and SaaS with patented technology
- High Revenue Retention: 94.92% retention rate
ESDS, founded in 2005, stands out as one of only two Indian companies providing a complete range of GPU-as-a-Service (GPUaaS). The company’s unique technology and market position are key factors.
The ₹576 crore from the fresh issue of equity shares is specifically earmarked for acquiring essential cloud computing equipment and data center infrastructure. This strategic investment aims to bolster ESDS’s operational capabilities.