ESDS Software Solution Ltd. IPO: issue size, price band, dates, subscription, GMP and listing

ESDS Software Solution Limited launched a mainboard IPO of ₹720 crore, structured as a 100% fresh issue (₹720 crore) with no offer for sale (OFS). The price band was ₹408 to ₹429 per share and the issue was open from 28 August 2026 to 1 September 2026, with listing on 4 September 2026. The stock listed at ₹746.30.

Business overview: what ESDS Software Solution does

ESDS Software Solution Limited is an India-based provider of AI-enabled cloud infrastructure, managed services, data centre infrastructure and software-as-a-service (SaaS) products. Its offering is positioned as an end-to-end platform covering colocation and data centre services, cloud computing (including community clouds and GPU-as-a-Service), cybersecurity and security operations, and in-house software delivered through subscription, including via its SPOCHUB marketplace.

In operating terms, the company participates across infrastructure-as-a-service (IaaS), managed services and SaaS. The company highlights its SWARAJ Cloud platform and usage-linked billing models, including pay-per-consumption and pay-per-branch constructs. Customer segments referenced include regulated industries such as banking, financial services and insurance (BFSI) and government, alongside a stated focus on growing the enterprise mix.

Footprint and milestones: data centres, platform development and certifications

ESDS’s milestones indicate a multi-year build-out of data centre capacity and cloud platform development.

Key developments include the launch of data centres in Nashik (2010), Bengaluru in partnership with Software Technology Parks of India (STPI) (2020), Mohali under an STPI master service agreement (2022), and Airoli (2023). In FY2025, the company launched a data centre in Noida, Uttar Pradesh, and also signed agreements related to proposed data centres, including a master service agreement with STPI for a proposed Kolkata data centre and an agreement with Central Electronics Limited for a proposed Sahibabad data centre. In 2026, it rebranded its cloud offering from eNlight Cloud to Swaraj.

The company also references process and intellectual property milestones, including CMMI maturity level 3 appraisal (2022), CMMI maturity level 5 appraisal for software discipline (2024), and patents linked to methods/systems for real-time detection of resource requirements and automatic adjustments in cloud services (US patent in 2015; India patent in 2022). The business description also points to compliance positioning and empanelment, including MeitY STQC (Ministry of Electronics and Information Technology, Standardisation Testing and Quality Certification) empanelment.

Issue structure, reservations and proposed use of proceeds

The IPO was entirely a fresh issue, which means proceeds (net of issue expenses) are intended to accrue to the company rather than to any selling shareholders. There was no OFS component.

As stated in the issue objectives, the company intends to utilise the net proceeds towards purchasing and installing cloud computing and other equipment and infrastructure for its relevant data centres, and towards general corporate purposes. Within the disclosed proposed allocation, ₹576.00 crore is earmarked for purchase and installation of cloud computing and other equipment and infrastructure for relevant data centres; the amount for general corporate purposes is not specified as a fixed figure in the provided context.

Reservation details provided for the bookbuild include allocations for qualified institutional buyers (QIBs), non-institutional investors (NIIs) and retail individual investors. The anchor investor framework provided includes an anchor allocation as a portion of the QIB book and a domestic mutual fund reservation within the anchor portion. The anchor portion size is shown as ₹216.00 crore.

Financial trajectory and disclosed KPIs

Across FY2024 to FY2026, ESDS reported increases in total revenue and profit after tax (PAT), along with an increase in total assets by FY2026.

In narrative terms, total revenue rose from ₹292.14 crore in FY2024 to ₹480.65 crore in FY2026, while PAT increased from ₹13.61 crore to ₹120.82 crore over the same period. The reported PAT margin in the financial table moved from 4.66% (FY2024) to 25.14% (FY2026). Total assets increased from ₹547.71 crore (FY2024) to ₹1,937.90 crore (FY2026).

Alongside the financial statements, the company’s disclosed key performance indicators (KPIs) at the time of the issue include an EPS of ₹12.03, EBITDA margin of 49.60%, and PAT margin of 25.59%. Reported return ratios include ROE (return on equity) of 25.12%, ROCE (return on capital employed) of 32.78%, and RoNW (return on net worth) of 22.85%. The debt-to-equity ratio is reported at 0.08.

For valuation context at the upper end of the price band, the disclosed pre-IPO P/E (price-to-earnings) multiple was 35.66 times and the price-to-book multiple was 8.15 times.

Subscription outcome, GMP observations and listing

The issue closed with an overall subscription of 25.77 times. Category data show NII subscription at 73.34 times and retail subscription at 19.67 times, while QIB subscription was 0.76 times.

In the grey market premium (GMP) observations provided, GMP ranged from ₹223 to ₹311 against a referenced issue price of ₹429, based on the latest 10 dated observations in the context. GMP is an unofficial indicator and can change.

The shares listed on 4 September 2026 at ₹746.30.

Key risks from the offer context and monitoring points

The risk statements and SWOT points in the provided context highlight operational, customer, execution and regulatory considerations.

Technology change risk is highlighted, including the possibility that customers could shift to newer platforms if the company does not keep pace with fast technology changes, with a potential requirement for higher spending to catch up.

The context also flags government-business exposure. A meaningful share of revenue is described as coming from government-related work, and changes in policy, budgets or tender rules are described as potential sources of uneven order flow and earnings volatility.

Competition risk is referenced through the presence of large Indian data centre and cloud providers, as well as hyperscalers operating in adjacent segments.

Cybersecurity, privacy and compliance risk is also noted, including the execution and liability implications of evolving requirements and the impact of high-impact cyber incidents.

Execution risk is described around bringing planned data centres online, including potential project delays.

The context additionally points to overseas subsidiary performance as a factor to watch, noting that a key overseas subsidiary has reported losses in prior years and that sustained losses could affect consolidated profitability and raise the risk of write-offs or non-recovery of loans.

Monitoring points that follow from the stated objects of the issue and the business model described in the context include the following statements:

The pace and timing of procurement and installation of cloud computing and related equipment at relevant data centres.

Progress on planned and proposed data centre projects referenced in the milestones and agreements.

Customer concentration and the mix between government, BFSI and enterprise customers, given the stated exposure to government-related work and top-customer concentration.

Operational continuity and risk management around cybersecurity and compliance, given the security operations positioning and evolving requirements.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (19 Sep 2026)

Grey market premium (GMP) trend

GMP is an unofficial market indicator and can change; these are dated snapshot observations, not a listing forecast.