Summary of this article
ESDS Software Solution IPO is set to open for subscription.
Grey market premium signals an expected 85 per cent listing gain.
Proceeds will fund data centre expansion and corporate requirements.
The initial public offering (IPO) of cloud service provider ESDS Software Solution is set to open for subscription on August 28. ESDS Software Solution IPO consists entirely of a fresh issue of shares.
Notably, the subscription window for ESDS Software Solution IPO will open on September 1, 2026. Here is a detailed look at the key details of the public issue and the company's business that investors should know, according to the Red Herring Prospectus (RHP) and market data:
ESDS Software Solution IPO: Offer Size And Selling Shareholders
ESDS Software Solution’s initial public offering comprises a fresh issue of 16.8 million equity shares aggregating up to Rs 720 crore. The promoters of the company include Piyush Prakashchandra Somani, Komal Piyush Somani, and the P.O. Somani Family Trust. Prior to the issue, the promoters and the promoter group held a 46.06 per cent stake in the company. Post the issue their stake in the firm will reduce to 39.47 per cent.
ESDS Software Solution IPO: Price Band And Lot Size
ESDS Software Solution has set the price band for its public issue at Rs 408 to Rs 429 per share. Retail investors can apply by placing bids for a minimum of 34 shares, which amounts to a minimum investment of Rs 14,586. Small non-institutional investors (sHNI) can bid for the issue by applying for a minimum of 14 lots or 476 shares, aggregating to Rs 2,04,204. Big non-institutional investors (bHNI) must bid for a minimum of 69 lots or 2,346 shares, amounting to Rs 10,06,434.
ESDS Software Solution IPO: Reservation
ESDS Software Solution has reserved not more than 50 per cent of the net offer for qualified institutional buyers (QIBs), not less than 15 per cent for non-institutional investors (NIIs), and not less than 35 per cent for retail individual investors (RIIs).
ESDS Software Solution IPO: GMP
The current trends in the Grey Market Premium (GMP) for ESDS Software Solution shares indicate a premium of Rs 365 above the upper end of the price band. Since the upper end of the price band is Rs 429, the estimated listing price for the stock is Rs 794, indicating an expected listing gain of 85.08 per cent per share.
ESDS Software Solution IPO: Key Financials
In the fiscal year ended March 31, 2026, ESDS Software Solution's total income stood at Rs 480.65 crore, increasing by 27.6 per cent from Rs 376.64 crore in the preceding fiscal. The company posted a profit for the year of Rs 120.82 crore in the same period, indicating a strong increase of 117 per cent compared to the profit of Rs 55.61 crore in the preceding fiscal.
ESDS Software Solution: Business Model & Revenue Generation
ESDS Software Solution operates as an integrated cloud infrastructure and software platform catering to banking, financial services, and insurance (BFSI) clients, government entities, and commercial enterprises.The company generates revenue through three businesses. The company generates revenue on a subscription or pay-per-use model by delivering scalable cloud computing resources as well as colocation and data centre hosting across five operational data centres in Navi Mumbai, Nashik, Bengaluru, Mohali, and Noida.
The company also generates revenue through recurring contract or subscription fees for delivering end-to-end IT infrastructure management, operational support, security monitoring, and continuous technical assistance. The third vertical of the company is its software as a service (SaaS) business in which it generates revenue from cloud-hosted software applications and digital platforms. In the fiscal year ended March 31, 2026, the Infrastructure as a Service (IaaS) segment was the largest contributor to the company’s revenue, generating Rs 207.20 crore and accounted for 43.88 per cent of total revenue from operations.
ESDS Software Solution: Competitors
The company faces competition across its different product and service offerings from varied industry players. Competitors in the domestic market include CtrlS Datacenters Limited, Nxtra By Airtel, Yotta Data Services, WebWerks India, Cyfuture India and Sify Infinit Spaces. The company has only one listed peer called E2E Networks.
ESDS Software Solution IPO: Should You Apply?
Investors should assess the risks and strengths related to ESDS Software Solution’s business model before applying in the bidding window once it opens:
ESDS Software Solution IPO: Key Risks
The company derives a significant portion of its revenue, directly or indirectly, from government entities and projects. For Fiscals 2026, 2025, and 2024, these projects represented 27.37 per cent, 29.52 per cent, and 34.04 per cent of its revenue from operations, respectively.
The company derived 43.88 per cent, 56.36 per cent, and 49.59 per cent of its revenue from operations in Fiscals 2026, 2025, and 2024, respectively, from IaaS, decline in demand for IaaS can affect the company’s business.
ESDS Software Solution relies on external vendors for critical aspects of its IT infrastructure.
ESDS Software Solution IPO: Key Strengths
The company provides solutions for client data requirements, diversifying its cloud computing portfolio to include public, private, virtual private, hybrid, and community clouds, alongside comprehensive SaaS offerings.
The company operates five physical data centres across key regions in India, allowing it to service a large number of clients.
The company is one of the only two players providing the entire spectrum of cloud, managed services, Data Centre infrastructure and software solutions in India.
ESDS Software Solution IPO: Objective
The company intends to use Rs 576 crore of the net proceeds for the purchase and installation of cloud computing equipment, along with other infrastructure necessary for its existing data centres in Airoli, Bengaluru, Mohali, and Nashik. The remaining funds will be deployed towards general corporate purposes.
