ESDS Software’s ₹720-cr IPO opens Aug 28, price band ₹408-429. The AI-cloud provider’s ₹5,028-cr valuation and FY26 profit of ₹120.8 cr will be tested by subscription demand.
Alpha Score of 57 reflects moderate overall profile with strong momentum, moderate value, weak quality, weak sentiment.
ESDS Software Solution Ltd, an AI-enabled cloud and data centre services provider, will open its ₹720-crore initial public offering on August 28, with a price band of ₹408 to ₹429 per share, the company announced Tuesday. The issue closes on September 1, and anchor investors can bid a day earlier.
The IPO is entirely a fresh issue of equity shares, with no offer-for-sale component. The company plans to use ₹576 crore of the proceeds to purchase and install cloud computing equipment and infrastructure for data centres, with the remaining amount earmarked for general corporate purposes. At the upper end of the price band, the issue implies a market capitalisation of about ₹5,028 crore.
ESDS was incorporated in 2005 and offers cloud, managed services, data centre infrastructure and software solutions. It is among two players in India providing the full spectrum of GPU-as-a-Service, cloud, managed services, data centre and software. The company was an early provider of community cloud services for organisations with specific data privacy, security, compliance and regulatory requirements.
In fiscal 2026, the company served over 2,500 customers across banking, financial services, insurance, public sector entities, businesses and enterprises. Revenue from operations rose to ₹472.21 crore, with net profit at ₹120.82 crore. That gives a trailing price-to-earnings multiple of about 41.6 times at the upper end of the price band.
The IPO allocation reserves 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. DAM Capital Advisors and Systematix Corporate Services are the book-running lead managers, with MUFG Intime India as registrar.
For investors, the subscription level will be the first real test of market appetite. A strong institutional bid could signal confidence in the company's growth prospects, while weak demand might pressure the listing. The company's capital-intensive expansion plan and competition in India's cloud services market are longer-term factors to watch.
The shares are proposed to be listed on the BSE and NSE on September 4.
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