ESDS Software Solution IPO Day 2, Issue Booked 7.49 Times As GMP Signals 78% Listing Gain

Mumbai: The ESDS Software Solution IPO was subscribed 7.49 times on the second day of bidding. Demand strengthened compared with its opening-day subscription level.

The Rs 720-crore mainboard issue opened on Friday and was booked 2.10 times on the first day. Bidding will close on Tuesday, September 1.

According to BSE data, the company received bids for 9,24,93,464 shares against 1,23,52,942 shares available.

The non-institutional investor portion was subscribed 20.71 times, while the retail category received 6.08 times bids. The qualified institutional buyer portion was booked only 0.03 times.

GMP indicates strong listing premium

The IPO’s grey market premium stood at Rs 335. Based on the upper price band of Rs 429, the estimated listing price works out to Rs 764 per share. This indicates a potential listing gain of 78.09 percent.

Grey market trends during the past four sessions show that the premium has moved higher, signalling positive sentiment. However, GMP is unofficial and can change before listing.

Brokerage recommends long-term subscription

Kantilal Chhaganlal Securities recommended subscribing to the issue from a long-term perspective. It said the IPO is valued at about 41.8 times FY26 earnings and 21.5 times adjusted EV/EBITDA.

The brokerage believes the company’s growth prospects and sizeable artificial intelligence contract could support expansion. However, customer concentration, strong competition and technological obsolescence remain key risks.

Fresh issue to fund expansion

The IPO is entirely a fresh issue, with no offer-for-sale component. ESDS plans to use Rs 576 crore to procure and deploy cloud computing equipment and other infrastructure for its data centre operations. The balance will support general corporate purposes.

The price band is Rs 408–Rs 429 per share. QIBs have been allocated 50 percent of the issue, NIIs 15 percent and retail investors 35 percent.

DAM Capital Advisors and Systematix Corporate Services are the lead managers, while MUFG Intime India is the registrar. The shares are expected to list on the BSE and NSE on September 4.

Founded in 2005, ESDS provides cloud, managed services, data centre infrastructure and software solutions. It is among two Indian providers offering a comprehensive GPU-as-a-Service suite.

Disclaimer: Grey market premiums are unofficial, speculative indicators and should not be considered investment advice. Investors must consult certified financial advisers.