ESDS Software Solution shares have delivered exceptional returns of 235.39% since listing, hitting the upper circuit for the fourth consecutive day on Wednesday, September 9, with the stock advancing 10% to its upper circuit of ₹1,438.85 per share on NSE. The stock was listed at ₹757 on NSE on September 3, representing a 76.46% premium over the IPO issue price of ₹429 per share, while on BSE it opened at ₹746.30, a 73.96% premium over the issue price. As per latest market data, the company's market capitalisation has reached ₹16,865 crore, with trading volumes surging past 13.9 million equity shares across both NSE and BSE. The stock's upper circuit level has been revised to 10% from 20% in recent trading sessions, reflecting the sustained investor interest.
Choice Institutional Equities has initiated coverage on ESDS Software Solutions with a 'Buy' rating and assigned a target price of ₹1,550, indicating an upside of another 20% from its previous close of ₹1,289.55. According to The Economic Times, Choice believes ESDS represents one of the most compelling listed opportunities for investors seeking exposure to India's structural expansion in cloud computing, data centres and AI infrastructure. The brokerage highlighted the company's integrated presence across cloud, colocation, GPU-as-a-Service, managed services and SaaS as a key differentiator. "Growth is underpinned by capacity expansion, deeper customer monetisation and operating leverage, with the $1.25 billion AI contract adding a significant new leg to the earnings trajectory," said Choice. The brokerage expects ESDS Software Solution to deliver strong growth over the forecast period, with revenue, EBITDA and PAT estimated to grow at 120.9%, 72.6% and 81.3% CAGR, respectively, over FY26–29E. Choice valued the company at 18 times its estimated FY28 EV-to-EBITDA.
ESDS Software Solution made its debut on Thursday, September 3, at a 76% premium to its issue price of ₹429 per share, and has since extended its gains to now trade at a 235.39% premium compared to its issue price. The company's ₹720 crore IPO was subscribed 135.88 times the total number of shares on offer, with the institutional and non-institutional investor portions seeing over 200x subscription rates. The QIB portion received 275x subscription, while the non-institutional portion saw 203x bids, and the retail portion was subscribed 39x. According to latest exchange data, the ESDS Software IPO was subscribed 135.88 times in three days, receiving bids for 1,67,85,63,340 shares compared to 1,23,52,942 shares on offer. The stock debuted at ₹757 per share on NSE and ₹746.30 on BSE, reflecting a premium of 76.46% over the issue price. The rapid ascent has added around ₹7,992 crore to ESDS Software Solution's market capitalisation since listing.
ESDS Software's initial public offering was an entirely fresh issue of 1.68 crore equity shares, raising ₹720 crore from equity market investors. After a reduction of ₹52.95 crore in related expenses with the public issue, the company collected a total net proceeds of ₹667.04 crore from the stock market. As per SEBI filings, the company plans to use 86.35% or ₹576 crore of the proceeds to purchase and install cloud computing, other equipment and infrastructure in the relevant data centres, while using the remaining 13.65% or ₹91.04 crore funds for general corporate purchases. The company expects to deploy these funds towards the goals in the financial year 2026-27 and the financial year 2027-28. According to the company's red herring prospectus, the listing is expected to enhance visibility and brand image among existing and potential customers, creating a public market for the equity shares.
ESDS Software Solution was incorporated in 2005 and provides cloud, managed services, software solution and data centre infrastructure services. In the financial year 2026, the company served over 2,500 customers across banking, insurance, financial services, public sector entities, businesses and enterprises. The company's total income increased 28% to ₹480.65 crore in FY26 from ₹376.64 crore in the year-ago period, while its profit after tax (PAT) more than doubled to ₹120.82 crore from ₹55.61 crore in FY25. Piyush Somani of ESDS Software told CNBC-TV18 post the stock's listing that the company aspires to cross ₹400 to ₹700 crore of profit after tax (PAT) over FY27-28. The continued investor interest stems from the company's services to multiple data centres across major cities in India, with the stock trading at ₹1,308.05 compared to the debut price of ₹757 apiece. According to The Economic Times, Choice expects the company's $1.25-billion AI infrastructure contract with Sharon AI to be a major growth driver, projecting revenue to rise from ₹472 crore in FY26 to ₹4,581 crore in FY28.
