ESDS IPO: 75% Listing Gain Expected with ₹325 GMP
By ThePip Desk
ESDS Software Solutions IPO opens Aug 28-Sep 1, targeting a 75.76% listing gain with a +325 GMP. Strong 88% first-day subscription indicates high investor interest.
ESDS Software Solutions’ Initial Public Offering (IPO) is eyeing a substantial 75.76% listing gain, driven by a current Grey Market Premium (GMP) of +325. The IPO, aiming to raise ₹720 crores, is set to open from August 28 to September 1, 2026.
The anticipated listing price stands at ₹754 per share, significantly above the IPO price band of ₹408 to ₹429 per share. The offering saw strong initial demand, with 88% subscription on its first day.
IPO Performance & Details
- Subscription Day 1: 88% overall
- Retail Segment: 1.21 times oversubscribed
- NII Segment: 1.29 times oversubscribed
- GMP: +325, indicating a rising market outlook
- IPO Size: ₹720 crores
Qualified Institutional Buyers (QIBs) had not yet placed bids at the close of the first day. The IPO consists entirely of a fresh issuance of equity shares, with no offer-for-sale component.
Analyst Perspectives & Company Strengths
Kantilal Chhaganlal Securities recommends the IPO for long-term investment, noting ESDS’s strong growth trajectory and significant artificial intelligence contracts. They highlight a valuation of approximately 41.8x FY26 price-to-earnings (P/E) and 21.5x adjusted enterprise value-to-EBITDA.
Swastika Investmart pointed to ESDS Software Solutions’ impressive financial performance, including a nearly ninefold growth in profit after tax (PAT) over the last two years. PAT margins expanded from 4.75% to 25.59%.
- Revenue Retention: 94.92% customer loyalty
- Core Business: Comprehensive cloud, data center, and SaaS provider
- Technology: Leverages proprietary solutions
Beacon Capital Advisors Pvt. Ltd. also recommends the offering, stating that at the upper price of ₹429 per share, the post-issue valuation results in a P/E ratio of 41.62x and a price-to-book (P/B) ratio of 8.15x based on FY26 outcomes. Despite a rich valuation, ESDS metrics compare favorably with industry peers.
Proceeds & Allocation
A significant portion, ₹576 crores, from the IPO proceeds will be allocated towards acquiring and implementing cloud computing equipment and enhancing data center infrastructure. The remaining funds are designated for general corporate purposes.
- QIBs Share: 50%
- NIIs Share: 15%
- Retail Investors Share: 35%
DAM Capital Advisors and Systematix Corporate Services are serving as the book-running lead managers for the IPO.