ESDS IPO Closes With 135.9X Oversubscription
ESDS Software Solution's ₹720 crore IPO was oversubscribed 135.88 times, driven by strong institutional and retail demand on its final day.
ESDS Software Solution's ₹720 crore initial public offering closed with massive investor demand on its third and final day. The enterprise cloud and AI company's IPO was oversubscribed 135.88 times overall, according to BSE data.
Qualified institutional buyers dramatically increased their participation on the last day. Their reserved portion was oversubscribed 261.51 times, with bids for 92.30 crore shares against the reserved 35.29 lakh shares.
Subscription Breakdown by Investor Category
Non-institutional investors led the demand throughout the bidding process. Their category was oversubscribed 192.94 times by the final close.
| Investor Category | Shares Reserved | Bids Received | Oversubscription |
|---|---|---|---|
| Qualified Institutional Buyers (QIB) | 35.29 Lakh | 92.30 Cr | 261.51X |
| Non-Institutional Investors (NII) | 26.47 Lakh | 51.07 Cr | 192.94X |
| Retail Investors | 61.76 Lakh | 24.48 Cr | 39.68X |
| Total | 1.24 Cr | N/A | 135.88X |
Retail investors subscribed their portion 39.68 times. This marked a significant surge from the subscription levels seen at the end of the second day, when the overall IPO was booked 18.34 times.
IPO Details and Fund Allocation
The IPO consists entirely of a fresh issue of shares, priced between ₹408 and ₹429 each. At the upper price band, the company seeks a valuation of approximately ₹5,028 crore, or about $527 million.
ESDS plans to use the net proceeds primarily for infrastructure expansion. A sum of ₹576 crore is earmarked for purchasing and installing cloud computing equipment at its existing data centres in Airoli, Bengaluru, Mohali, and Nashik. The remaining funds will be allocated for general corporate purposes.
Anchor Investment and Company Background
Ahead of the public offering, ESDS raised ₹216 crore from anchor investors. The company allotted 50.3 lakh shares to 19 entities at ₹429 per share. Anchor investors included Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Quant Mutual Fund, ITI Mutual Fund, and JM Flexicap Fund.
Founded in 2005 and based in Nashik, ESDS provides cloud computing, data centre services, managed services, and AI-led digital solutions to government and enterprise clients. This listing represents the company's second attempt to go public after initially filing papers in September 2021 and refiling in March 2025.
The company's shares are expected to list on the BSE and NSE. On the financial front, ESDS reported a consolidated net profit of ₹120.8 crore for FY26, more than double its ₹55.6 crore profit in the previous fiscal year. Its operating revenue grew 30.7% to ₹472.2 crore from ₹361.3 crore in FY25.
