Minerva Capital Research Solutions

ESDS Software Solution

RHP
ListedListed 4 Sep 2026MainboardNSE: ESDSCheck allotment
Current price₹ 1,271.7+196.43% since issue
Listing day+76.46%
Issue price
₹ 429
Issue size
₹ 720 Cr.
Min. investment
₹ 14,586
Listing price
₹ 757
Subscribed
135.88x
Lot size
34 shares
P/E
41.61
RoNW
22.85%
RoCE
32.78%
Debt / Equity
0.08
PAT margin
25.59%
EBITDA margin
49.60%
RoE
25.12%
EPS
₹ 10.31
NAV
₹ 52.66
Promoter stake
39.47%

About

ESDS Software Solution Limited was started in August 2005. It provides cloud services, managed IT services, data centre infrastructure and software, and describes itself as an AI enabled provider. Its customers are in banking and insurance, government and large enterprises, and it served 2,501 customers in FY2026. The company offers three things together. Infrastructure as a Service covers colocation and data centre services, along with public, private, virtual private, hybrid and community cloud, and GPU as a Service. Managed services cover cloud and data centre management, cybersecurity, IT infrastructure and network management, backup and disaster recovery, database management and DevOps. Software as a Service covers its own tools such as data centre management software, vulnerability scanners, web access firewalls, VPN solutions and AI powered GPU monitoring. It runs five Tier 3 data centres across India covering more than 75,266 square feet, with backup power, disaster recovery setup and round the clock service. It has also built its own technology, including SWARAJ Cloud, a patented cloud autoscaling system that has since been developed into an AI enabled cloud platform focused on data sovereignty, security and compliance. As on 30 June 2026 it had 993 employees.

Timeline

  1. Opens
    28 Aug
    done
  2. Closes
    1 Sep
    done
  3. Allotment
    2 Sep
    done
  4. Refunds
    3 Sep
    done
  5. Demat credit
    3 Sep
    done
  6. Listing
    4 Sep
    done

Grey market premium (GMP)

GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Highest
₹ 372 on 29 Aug 2026
Lowest
₹ 245 on 2 Sep 2026
First quoted
₹ 275 on 25 Aug 2026

Subscription

How many times each investor group bid for its share, as of 04 Sep 2026, 06:30 PM IST.

How much to apply for

The smallest and largest bids for each kind of investor at the upper price band.

Lots and amounts by investor type
Retail (Min)134₹ 14,586
Retail (Max)13442₹ 1,89,618
S-HNI (Min)14476₹ 2,04,204
B-HNI (Min)692,346₹ 10,06,434

Company overview

Financials

Financials by year
Assets1,937.9655.95547.71
Total Income480.65376.64292.14
Profit After Tax120.8255.6113.61
EBITDA234.23154.89101.88
NET Worth528.81405.55206.36
Reserves and Surplus533.62407.54216.62
Total Borrowing42.9262.71149.04

Strengths

  • Profit has grown very fast, from Rs 13.61 crore in FY2024 to Rs 55.61 crore in FY2025 and Rs 120.82 crore in FY2026.
  • Sales have grown steadily, from Rs 292.14 crore in FY2024 to Rs 376.64 crore in FY2025 and Rs 480.65 crore in FY2026.
  • EBITDA more than doubled in two years, from Rs 101.88 crore in FY2024 to Rs 234.23 crore in FY2026.
  • The margin is strong for an infrastructure business, with a PAT margin of 15.39% and RoCE of 24.73%.
  • The company cut its debt sharply while growing, from Rs 149.04 crore in FY2024 to Rs 42.92 crore in FY2026, against a net worth of Rs 528.81 crore.
  • It owns real infrastructure, with five Tier 3 data centres across India covering more than 75,266 square feet.
  • The customer base is wide at 2,501 customers in FY2026, spread across banking and insurance, government and enterprises.
  • It has its own patented technology in SWARAJ Cloud, and offers newer services such as GPU as a Service, which is in demand for AI workloads.
  • The whole issue is fresh capital, and Rs 576 crore of it goes into cloud computing equipment and data centre infrastructure.

Risks

  • The issue is priced high on earnings. At the upper band of Rs 429 the P/E is about 41.61 times on an EPS of Rs 10.31.
  • Return on net worth is only 13.71%, which is modest against that valuation and much lower than the RoCE of 24.73%.
  • Total assets almost tripled in one year, from Rs 655.95 crore to Rs 1,937.90 crore. That is a very large build up, and the earnings from it are still to come through.
  • Data centres need money all the time. Servers, GPUs and cooling equipment date quickly and have to be replaced, so capital spending never really stops.
  • Rs 576 crore of the Rs 720 crore issue goes into equipment. The whole case rests on filling that new capacity with paying customers.
  • Promoter holding is already low at 46.06% before the issue and falls further to 39.47% after it, so there is no dominant promoter holding.
  • Competition comes from global hyperscalers such as AWS, Microsoft Azure and Google Cloud, which have far deeper pockets and larger scale.
  • Government and BFSI customers usually buy through tenders, which means price pressure and slow payments.

What the money is for

Objects of the issue
Purchase and installation of cloud computing and other equipment and infrastructure for Data Centres.576
General Corporate Purposes—

Promoters

  • Piyush Prakashchandra Somani
  • Komal Piyush Somani
  • P.O.Somani Family Trust
Promoter holding46.06%→39.47%before → after the issue · down 6.59 points

Anchor investors

19 anchors put in ₹ 306 Cr., including 13 mutual funds.

Anchor investors
MOTILAL OSWAL DIGITAL INDIA FUND10,25,6444420.37%
MOTILAL OSWAL CONTRA FUND93,22841.85%
BANDHAN FOCUSED FUND6,52,6982812.96%
BANDHAN SMALL CAP FUND4,66,174209.26%
QSIF HYBRID LONG-SHORT FUND5,59,4362411.11%
QSIF ACTIVE ASSET ALLOCATOR LONG-SHORT FUND5,59,4362411.11%
ITI LARGE & MIDCAP FUND2,09,78094.17%
ITI LARGE CAP FUND1,16,55252.31%
ITI BALANCED ADVANTAGE FUND46,61420.93%
ITI BHARAT CONSUMPTION FUND46,61420.93%
ITI BUSINESS CYCLE FUND46,61420.93%
JM FLEXICAP FUND1,86,49083.7%
BAJAJ GENERAL INSURANCE LTD.-POLICYHOLDERS EQUITY1,30,5435.62.59%
BAJAJ GENERAL INSURANCE LTD.-SHAREHOLDERS EQUITY55,9472.41.11%
SAMCO SMALL CAP FUND1,16,55252.31%
SANSHI FUND-I2,33,070104.63%
MERU INVESTMENT FUND PCC-CELL 12,33,1041004.63%
COGNIZANT CAPITAL DYNAMIC OPPORTUNITIES FUND1,39,80862.78%
CP Capital Ltd.1,16,66052.32%

Registrar, lead managers and documents

Listing on
BSE, NSE
Face value
₹ 1 a share
Registrar
MUFG Intime India Private Limited
Lead managers
Systematix Corporate Services Limited, Dam Capital Advisors Ltd
Red herring prospectus (RHP)
Open
Basis of allotment
Open

IPO dates, prices, grey market premium (GMP), subscription and the company overview: IPO Guru, updated three times a day. GMP is an unofficial premium from the unregulated grey market. It is not published, verified or regulated by SEBI, NSE or BSE, grey market deals are not legally enforceable, and it is not a reliable indicator of the listing price. Do not apply for an IPO on the basis of GMP. It is not a recommendation of Minerva Capital Research Solutions.

Our recommendations are research opinions, not investment advice. Read the offer document (RHP) and consult your financial adviser before investing.