ESDS Software Solutions IPO: What investors need to know before subscribing

ESDS Software Solutions’ ₹720-crore IPO opens on August 28 and closes September 1, with a price band of ₹408-429 per share. The company has raised ₹215.99 crore from anchor investors.

IPO period August 28, 2026, for subscription and close on Tuesday, September 01, 2026.

Price band:  ESDS Software Solution Limited has fixed the price band of Rs 408 to Rs 429 per Equity Share of face value Re. 1/- each for its maiden initial public offer.

Market lot: Investors can bid for a minimum of 34 Equity Shares and in multiples of 34 Equity Shares thereafter.

IPO size: A fresh issue of up to Rs 720 crore.

Utility of funds: The proceeds from its fresh issuance worth Rs 576 crore will be utilised for purchase and installation of cloud computing and other equipment and infrastructure for the company’s relevant data centres, and general corporate purposes.

IPO quota: The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.

Anchor investors: ESDS Software Solution Limited has garnered Rs 215.99 crore from anchor investors ahead of its initial public offering, which opens for public subscription on Friday, August 28, 2026. The company informed the bourses that it allocated 50,34,964 equity shares at Rs 429 per share to anchor investors. Some of the marquee institutions that participated in the anchor include Bajaj General Insurance Limited (Policyholder Fund), Cognizant Capital Dynamic Opportunities Fund, Sanshi Fund-I, CP Capital Limited and Meru Investment Fund PCC – Cell 1, amongst others.

 Amongst equity- oriented schemes, the company has allocated shares to Motilal Oswal Digital India Fund, Bandhan Focused Fund and Quant Mutual Fund – QSIF Hybrid Long-Short Fund.

Company Information: Incorporated in 2005, the company is an end-to-end AI-enabled cloud, managed services, data centre infrastructure and software solutions provider in India. It is one of the only two players in India providing the entire spectrum of GPUaaS cloud, managed services, data centre infrastructure and software solutions in India (source: Nexdigm Report, page 7). Further, among the two, it is the largest in terms of revenue from operations in Fiscal 2026 (source: Nexdigm Report, page 77), with a revenue from operations of ₹ 472.2 crore in Fiscal 2026.

The company offers a comprehensive platform of cloud infrastructure and software solutions consisting of infrastructure as a service (IaaS), which is broadly divided into colocation and data centre services, cloud services and cloud computing, managed services and software as a service (SaaS), which allows it to provide well architected cloud-adoption solutions to its customers aimed at reducing their cost while providing security, flexibility, scalability and reliability.

BRLMS/Registrar: DAM Capital Advisors Limited, and Systematix Corporate Services Limited are the book-running lead manager, and MUFG Intime India Private Limited is the registrar of the offer.

Listings at: The equity shares are proposed to be listed on the NSE and BSE Limited.

Brokers’ views:  

Anand Rathi: At the upper price band, the company is valued at 41.6x FY26 P/E, implying a post-issue market capitalization of ₹50,284 million. Given the strong growth potential of the Indian cloud and AI infrastructure market, the company’s integrated offerings and improving profitability, we believe the premium valuation is justified to an extent. Accordingly, we recommend a “Subscribe – Long Term” rating for the issue.

SBI Securities:   Valuation: At the upper price band of Rs 429, ESDS is valued at FY26 P/E of 41.6x and EV/EBITDA multiple of 13.2x on post issue capital. ESDS is well positioned to benefit from India’s rapidly growing cloud and data centre industry, with the Indian data centre market expected to grow at a CAGR of ~20.7% during FY26-FY30, driven by increasing cloud adoption, AI workloads, data localisation requirements and ongoing digital transformation initiatives. The company has delivered a strong FY24-26 Revenue/EBITDA/PAT CAGR of 28.4%/51.6%/186.9%, respectively, supported by operating leverage and an improving business mix. EBITDA margin expanded significantly from 35.6% in FY24 to 49.6% in FY26. While risks remain around government exposure (~27% of FY26 revenue), customer concentration and rapid technological changes, these are partly mitigated by rising enterprise revenues, diversified service offerings and healthy customer retention. Considering its differentiated cloud platform, improving profitability, scalable business model and favourable industry tailwinds, we recommend investors to SUBSCRIBE to the issue at the Cut-Off Price.

Published on August 28, 2026