ESDS IPO Subscribed 8X On Day 2, NII Portion Booked 22X

Enterprise cloud and AI company ESDS Software Solution’s IPO was subscribed more than eight times within the first two hours of bidding on Day 2, driven by strong demand from NIIs and retail investors.

As of 10:51 IST, investors had placed bids for 9.99 Cr shares against the 1.24 Cr shares on offer, translating into an overall subscription of 8.08X, according to BSE data.

NIIs led the demand, bidding for 5.82 Cr shares against the 26.47 Lakh shares reserved for them. The category was subscribed 22X.

Within this segment, the portion reserved for investors bidding for more than ₹10 Lakh was booked 21.39X. Meanwhile, the portion for investors bidding between ₹2 Lakh and ₹10 Lakh was subscribed 23.22X.

Retail investors placed bids for 4.15 Cr shares against their reserved portion of 61.76 Lakh shares, resulting in a subscription of 6.72X.

However, QIB participation remained muted. The category received bids for 1.29 Lakh shares against the 35.29 Lakh shares available for it, translating into a subscription of 0.04X.

The IPO gives Indian public market investors an opportunity to gain exposure to the country’s cloud and AI infrastructure growth story amid rapid adoption of AI by enterprises and government organisations. 

The IPO was subscribed 2.1X on the first day of bidding, receiving bids for 2.60 Cr shares. At the end of Day 1, the NII and retail portions were booked 3.51X and 2.69X, respectively, while the QIB category was subscribed 0.01X.

ESDS’ ₹720 Cr fresh issue-only IPO will close tomorrow. Its shares are expected to list on the BSE and NSE on Friday (September 4). The company has set a price band of ₹408-₹429 per share and is seeking a valuation of around ₹5,028 Cr (about $526.8 Mn) at the upper end.

Founded in 2005, Nashik-based ESDS provides cloud computing, data centre, managed services, and AI-led digital solutions to government and enterprise customers.

The company plans to deploy ₹576 Cr from the net proceeds towards purchasing and installing cloud computing equipment and other infrastructure at its existing data centres in Airoli, Bengaluru, Mohali, and Nashik. A portion of the proceeds will be used for general corporate purposes.

Ahead of the public issue, ESDS raised ₹216 Cr from anchor investors by allotting 50.3 Lakh equity shares to 19 entities at ₹429 apiece.

On the financial front, ESDS reported a consolidated net profit of ₹120.8 Cr in FY26, more than double the ₹55.6 Cr it posted in the previous fiscal year. Its operating revenue rose 30.7% to ₹472.2 Cr from ₹361.3 Cr in FY25.

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