ESDS Software IPO: ₹720-crore cloud issue opens Aug 28

ESDS Software Solutions, an AI-enabled cloud and data centre provider, opens its ₹720-crore initial public offering on Friday, August 28, 2026. The price band is ₹408 to ₹429 per share, and the subscription closes on September 1.

The company has already raised ₹215.99 crore from anchor investors, including Bajaj General Insurance, Cognizant Capital, and several mutual funds such as Motilal Oswal Digital India Fund and Bandhan Focused Fund. The fresh issue proceeds, worth ₹576 crore, will go toward purchasing and installing cloud computing and data centre equipment, plus general corporate purposes.

ESDS was incorporated in 2005 and is one of only two players in India that offer the full spectrum of GPUaaS cloud, managed services, data centre infrastructure, and software solutions, according to a Nexdigm report cited in the prospectus. It is the largest of those two by revenue, with ₹472.2 crore in fiscal 2026.

Anand Rathi analysts valued the company at 41.6 times FY26 earnings at the upper price band, implying a post-issue market capitalisation of ₹50,284 million. They called the premium valuation “justified to an extent” given the growth potential of the Indian cloud market and recommended a “Subscribe. Long Term” rating.

SBI Securities also recommended subscribing at the cut-off price. The brokerage noted that the Indian data centre market is expected to grow at a compound annual rate of about 20.7% through fiscal 2030, driven by cloud adoption, AI workloads, and data localisation rules. ESDS’s EBITDA margin expanded from 35.6% in fiscal 2024 to 49.6% in fiscal 2026, and its revenue, EBITDA, and profit after tax all grew at more than 28% annually over the same period.

SBI Securities flagged risks including government exposure (roughly 27% of FY26 revenue), customer concentration, and rapid technology shifts, but said those are partly offset by rising enterprise revenue, a diversified service lineup, and high retention rates.

The IPO allocates up to 50% of the net offer to qualified institutional buyers, at least 15% to non-institutional bidders, and 35% to retail investors. The equity shares will list on the NSE and BSE.

The broader Indian cloud infrastructure sector is attracting significant capital as enterprises shift workloads to local data centres. The government’s data localisation push and the surge in AI model training have created demand for GPU-as-a-service offerings, a segment where ESDS holds a differentiated position alongside one other domestic competitor. The IPO’s reception will offer a read on investor appetite for themed plays in this space.