ESDS Software Solutions IPO Fully Subscribed On Day 1; GMP Signals 77% Listing Gain

The initial public offering (IPO) of ESDS Software Solutions was fully subscribed on the first day of bidding on Friday, with the issue receiving strong demand from retail and non-institutional investors.

The company's ₹720-crore IPO was subscribed 1.15 times as of 1 pm, with investors placing bids for more than 1.41 crore shares against 1.23 crore shares on offer, according to NSE data.

The non-institutional investor (NII) category was subscribed 1.7 times, while the retail investor portion received 1.6 times subscription.

ESDS Software Solution, an AI-enabled cloud, managed services, data centre infrastructure and software solutions provider, had raised ₹216 crore from anchor investors on Thursday.

ESDS Software Solutions IPO GMP

In the grey market, ESDS Software Solutions shares were commanding a premium of up to 77%, according to platforms tracking unofficial market activity.

InvestorGain quoted a grey market premium (GMP) of ₹330 for the shares, indicating a potential listing gain of 76.92% over the upper end of the IPO price band. IPO Watch, meanwhile, quoted a GMP of 75.76%.

GMP is an unofficial and unregulated market indicator. It can change before listing and does not guarantee the actual listing price or returns.

The IPO opened on August 28 and will remain open until September 1. The company has fixed the price band at ₹408-429 per share, with the shares proposed to be listed on both the BSE and NSE on September 4.

How ESDS Plans To Use IPO Proceeds

ESDS plans to utilise ₹576 crore of the IPO proceeds to purchase and install cloud computing equipment and other infrastructure for its data centres. The remaining funds will be used for general corporate purposes.

Incorporated in 2005, ESDS provides cloud, managed services, data centre infrastructure and software solutions. During fiscal 2026, the company served more than 2,500 customers across banking, financial services and insurance, public sector entities, businesses and enterprises.

Revenue from operations stood at ₹472.21 crore in fiscal 2026, while net profit was ₹120.82 crore.

Analyst View

Master Capital Services said the Indian digital infrastructure sector is witnessing strong growth, driven by increasing adoption of artificial intelligence, cloud computing, data centres and managed services.

The brokerage highlighted the expansion potential of India's cloud GPU, data centre, cloud services and managed services markets.

According to Master Capital, ESDS is positioned to benefit from rising demand for AI and cloud infrastructure, supported by its IaaS, managed services and SaaS portfolio, five Tier-3 data centres, patented SWARAJ Cloud platform and growing customer base.

Its strategic AI cloud infrastructure agreement further strengthens its positioning in the expanding AI infrastructure market, Master Capital said, adding that investors may consider the IPO as a potential long-term investment opportunity.