ESDS Software Solution IPO has entered its second day of bidding on Monday, 31 August. The mainboard IPO, which opened for subscription on Friday, has received strong response from investors by receiving 2.10 times subscription on the first day.
The ESDS Software Solution IPO has set a price band of ₹408– ₹429 per share for its ₹720-crore initial public offering. The mainboard IPO will close on Tuesday, 1 September.
ESDS Software Solution IPO GMP today, or grey market premium, stands at ₹335. Based on the upper end of the IPO price band and the prevailing grey market premium, the estimated listing price is ₹764 per share, implying a 78.09% premium over the IPO price of ₹429.
The grey market trends over the past four sessions indicate that the IPO’s GMP has moved upward today, pointing to a positive sentiment and optimistic expectations for the stock’s listing.
ESDS Software Solution IPO subscription status
The bidding for second day of ESDS Software Solution IPO will begin at 10 am on Monday.
On the first day, ESDS Software Solution IPO was booked 2.10 times. The retail portion was subscribed 2.69x, and NII portion has been booked 3.51x, QIBs portion was subscribed 0.01 times
The company has received bids for 2,59,78,006 shares against 1,23,52,942 shares on offer, according to BSE data.
ESDS Software Solution IPO review
Kantilal Chhaganlal Securities has advised investors to subscribe to the ESDS Software Solution IPO with a long-term perspective. The brokerage noted that the issue is valued at around 41.8x FY26 price-to-earnings (P/E) and 21.5x adjusted EV/EBITDA. Despite the relatively high valuation, it sees potential in the company’s growth prospects and sizeable AI contract, which could support long-term expansion. However, customer concentration, intense competition and the risk of technology becoming obsolete remain key concerns for investors to monitor.
Beacon Capital Advisors Pvt. Ltd. has also recommended investors apply for the IPO. At the upper price band of ₹429 per share, the brokerage estimates ESDS Software Solution’s post-issue valuation at 41.62x P/E and 8.15x price-to-book (P/B), based on FY26 financials.
Although the brokerage acknowledged the premium valuation, it believes ESDS Software Solution remains favourably positioned against its peers due to its healthy profitability, growth potential and technology-focused business model. Beacon Capital Advisors considers the IPO fairly valued when compared with similar listed companies.
ESDS Software Solution IPO details
The public issue comprises entirely a fresh issue of equity shares, with no offer-for-sale (OFS) component.
ESDS Software Solution will utilise ₹576 crore of the IPO proceeds to procure and deploy cloud computing equipment and other infrastructure for its data centre operations. The remaining funds will be used for general corporate purposes.
Under the IPO quota, 50% of the issue has been reserved for qualified institutional buyers (QIBs), while non-institutional investors (NIIs) and retail investors have been allocated 15% and 35%, respectively.
DAM Capital Advisors and Systematix Corporate Services are acting as the book-running lead managers for the issue, while MUFG Intime India is the registrar. The company’s shares are expected to be listed on both the BSE and NSE on September 4.
Established in 2005, ESDS offers cloud and managed services, data centre infrastructure and software solutions. The company is also among the two players in India providing a comprehensive suite of GPU-as-a-Service (GPUaaS), alongside cloud, managed services, data centre infrastructure and software solutions.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
