ESDS Software Solution IPO: GMP rockets at opening; hints at listing gains - Check share price prediction, closing date

The ESDS Software Solution IPO date has been set for 28 August, with the public issue scheduled to close on 1 September. The ESDS Software Solution IPO price band has been fixed at ₹408– ₹429 per share for the company’s ₹720-crore initial public offering.

ESDS Software Solution IPO GMP today, or grey market premium, is +325. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of ESDS Software Solution share price was indicated at ₹754 apiece, which is 75.76% higher than the IPO price of ₹429.

According to recent grey market trends from the past four sessions, the IPO's Grey Market Premium (GMP) is showing an upward trend today, suggesting a positive outlook for the listing. During this timeframe, experts reported that the GMP fluctuated between ₹275 and ₹365.

ESDS Software Solution IPO subscription status for the public issue will open at 10:00 IST on Friday during the deals.

ESDS Software Solution IPO subscription status

ESDS Software Solution IPO subscription status was 88% on day 1, so far. The retail portion is subscribed 1.21x, and NII portion has been booked 1.29x, QIBs portion is yet to receive bids.

The company has received bids for 1,08,80,884 shares against 1,23,52,942 shares on offer at 11:57 IST, according to BSE data.

ESDS Software Solution IPO review

Kantilal Chhaganlal Securities has recommended investors subscribe for the long term, despite the ESDS Software Solution IPO being valued at around 41.8x FY26 P/E and 21.5x adjusted EV/EBITDA. The brokerage believes the company’s strong growth outlook and large AI contract offer a compelling long-term opportunity, although risks related to customer concentration, competition and technology obsolescence remain key monitorables.

Swastika Investmart highlighted ESDS Software Solution’s sharp margin expansion, significant profit growth and improving balance sheet. The brokerage noted that the company has reported nearly nine-fold growth in PAT over the past two years, with PAT margin expanding from 4.75% to 25.59%.

According to Swastika Investmart, ESDS offers differentiated positioning as a full-stack cloud, data-centre and SaaS player with patented technology. Its strong customer stickiness, reflected in a 94.92% revenue retention rate, along with rising demand for cloud computing, data-centre infrastructure, cybersecurity and digitalisation, provides a favourable long-term growth opportunity. However, the brokerage also noted that ESDS is a richly valued, high-growth technology play without a clear valuation benchmark.

Meanwhile, Beacon Capital Advisors Pvt. Ltd. has recommended that investors apply for the issue. At the upper price band of ₹429 per share, the brokerage noted that ESDS Software Solution is valued at a post-issue P/E of 41.62x and P/B of 8.15x, based on its FY26 financial performance.

While acknowledging the premium valuation, Beacon Capital Advisors believes the company compares favourably with its peers, supported by its strong profitability, growth prospects and technology-driven business model. The brokerage considers the issue fairly valued relative to comparable companies.

ESDS Software Solution IPO details

The public issue consists entirely of a fresh issue of equity shares, with no offer-for-sale (OFS) component.

ESDS Software Solution plans to use ₹576 crore from the IPO proceeds to acquire and install cloud computing equipment and other infrastructure for its data centre operations. The balance of the funds will be allocated towards general corporate purposes.

The issue allocation reserves 50% for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.

DAM Capital Advisors and Systematix Corporate Services are the book-running lead managers for the IPO, while MUFG Intime India has been appointed as the registrar. The company’s shares are scheduled to make their stock market debut on the BSE and NSE on 4 September.

Founded in 2005, ESDS provides cloud services, managed services, data centre infrastructure, and software solutions, and is one of the two companies in India delivering the complete range of GPU-as-a-Service (GPUaaS), along with cloud, managed services, data centre infrastructure, and software solutions.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.