ESDS Shares Hit 20% Upper Circuit For Second Straight Session

Shares of enterprise cloud and AI company ESDS Software Solution hit the 20% upper circuit for the second consecutive trading session today, extending their rally following a bumper stock market debut last week. 

The stock was locked at ₹1,074.65 on the BSE, taking the company’s market capitalisation to ₹12,596 Cr (about $1.3 Bn). On the NSE, ESDS shares hit the upper circuit at ₹1,090.05. 

At these levels, the stock was trading more than 150% above its IPO issue price of ₹429. 

ESDS made its stock market debut on Friday (September 4), listing at ₹757 on the NSE, a 76.5% premium over the issue price. On the BSE, the stock opened at ₹746.30, marking a premium of nearly 74%. 

The shares subsequently hit their 20% upper circuits at ₹908.40 on the NSE and ₹895.55 on the BSE and remained locked at those levels for the rest of the session. 

The latest rally also came after Choice Institutional Equities initiated coverage on ESDS with a ‘buy’ rating and a target price of ₹1,550. The target implies an upside of around 42% from the stock’s NSE price today. 

The brokerage expects ESDS’ $1.25 Bn AI infrastructure contract with Australia-based Sharon AI to be a major growth driver. It projects the company’s revenue to rise from ₹472 Cr in FY26 to ₹4,581 Cr by FY28. 

However, Choice flagged the execution of the AI contract, customer concentration, capital-intensive expansion, and intensifying competition as key risks. 

ESDS’ Blockbuster IPO

ESDS’ ₹720 Cr IPO, which comprised entirely a fresh issue of shares, was subscribed 135.88X during the three-day bidding period. The QIB portion was booked 261.51X.

Ahead of the IPO, the company raised ₹216 Cr from anchor investors by allotting 50.3 Lakh shares at ₹429 apiece. The anchor book included Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Quant Mutual Fund, ITI Mutual Fund, and JM Flexicap Fund, among others. 

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 of the IPO proceeds towards purchasing and installing cloud computing equipment and other infrastructure at its data centres. The remaining proceeds will be used for general corporate purposes.

ESDS’ consolidated net profit more than doubled to ₹120.8 Cr in FY26 from ₹55.6 Cr in the previous fiscal. Operating revenue rose 30.7% to ₹472.2 Cr from ₹361.3 Cr in FY25.

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