ESDS Software IPO: Blockbuster listing! Money doubled today - Buy more, book profit and exit or hold? Guide for investor
ESDS Software Solution shares hit a 20% upper circuit on debut, trading at ₹895.55 on BSE and ₹908.40 on NSE, with a strong performance over the issue price. The IPO was oversubscribed 135.88 times, indicating robust investor interest in the cloud computing sector.
ESDS Software Solution share price locked in a 20% upper circuit on Friday, 4 September, after the stock made a blockbuster listing debut today.
ESDS Software Solution share price today was trading at ₹895.55 apiece on the BSE and ₹908.40 apiece on the NSE, with both exchanges hitting the 20% upper circuit. On the NSE, ESDS Software Solution share price opened at ₹757 per share, marking a 76.46% premium over the issue price of ₹429. On the BSE, the stock opened at ₹746.30 apiece, up 73.96% from the issue price.
Following the sharp gains, ESDS Software Solution share price has surged around 108% from the issue price on the BSE and 111% on the NSE. In effect, the stock has more than doubled investors’ money on its listing day.
The company’s market capitalisation stood at ₹10,647.44 crore on the NSE and ₹10,496.83 crore on the BSE.
ESDS Software Solution share price - Buy more, book profit and exit or hold?
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said ESDS Software Solution Ltd. made a strong debut at ₹757 on the NSE, marking a 76% premium over its ₹429 issue price and exceeding the bullish expectations behind the brokerage’s “Subscribe” rating. She attributed the positive outlook to sharp margin expansion, nearly 9x growth in PAT and strong customer stickiness.
Nyati said rising demand for cloud computing, data-centre infrastructure, cybersecurity and digitalisation in India offers ESDS a favourable long-term growth opportunity. However, given the sharp listing-day gains, she expects some near-term profit-taking as valuations have moved ahead of fundamentals.
She advised existing allottees to consider booking partial profits at current levels while holding the remaining shares with a stop loss of ₹650–680. Investors who missed the IPO, she said, could wait for a pullback toward ₹600–650 before considering a fresh entry.
Dr. Ravi Singh, Chief Research Officer at Master Capital Services, said ESDS Software Solution’s long-term business prospects remain relevant, supported by rising demand for cloud services, data centres and AI infrastructure.
Singh said investors who received allotment may book partial profits after the premium listing and hold the remaining shares for the long term. Those who missed the IPO, he added, may consider entering if the stock witnesses a meaningful correction from current levels.
ESDS Software Solution IPO details
The ESDS Software Solution IPO received an overwhelming response from investors, with the issue subscribed 135.88 times on the final day of bidding.
ESDS Software Solution, an AI-enabled provider of cloud computing, managed services, data centre infrastructure, and software solutions, raised ₹216 crore from anchor investors ahead of its IPO.
The public issue comprised entirely a fresh issue of equity shares worth up to ₹720 crore, with the price band fixed at ₹408–429 per share.
Of the total IPO proceeds, the company plans to allocate ₹576 crore towards the purchase and installation of cloud computing equipment and other infrastructure for its data centres. The remaining funds will be utilised for general corporate purposes.
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.
About the Author
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.