CLOSED
NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%NIFTY 5022,453.30+0.98%SENSEX74,235.62+1.24%BANK NIFTY48,892.15+1.45%NIFTY IT35,124.80-0.52%NIFTY MIDCAP52,487.25+0.87%
Home/Business/ESDS IPO: 75% Listing Gain Expected with…

ESDS IPO: 75% Listing Gain Expected with ₹325 GMP

Business
By ThePip Desk•
Add as a preferred source on Google
A graphic showing ESDS Software Solutions IPO details, featuring an upward stock chart, cloud icons, and server racks, symbolizing growth and technology.

ESDS Software Solutions IPO performance with cloud and data center elements.

Key Highlights

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’ (IPO) is eyeing a substantial 75.76% listing gain, driven by a current (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

  • Day 1: 88% overall
  • Segment: 1.21 times oversubscribed
  • Segment: 1.29 times oversubscribed
  • GMP: +325, indicating a rising market outlook
  • IPO Size: ₹720 crores

(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 () and 21.5x adjusted enterprise value-to-.

Swastika Investmart pointed to ESDS Software Solutions’ impressive financial performance, including a nearly ninefold growth in profit after tax () over the last two years. PAT margins expanded from 4.75% to 25.59%.

  • 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 () 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.

Beacon Capital Advisors Pvt. Ltd.DAM Capital AdvisorsESDS Software SolutionsIndiaKantilal Chhaganlal SecuritiesSwastika InvestmartSystematix Corporate Services