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Anand Rathi Report
ESDS Software Solutions IPO: 10 Key Things to Know Before You Subscribe
1. IPO date
ESDS Software Solutions' initial public offering (IPO) opens for subscription today, August 28, 2026, and will close on September 1, 2026.
2. Price band
The company has set the IPO price band at Rs 408 to Rs 429 per equity share with a face value of Rs 1 each.
3. Issue size
The IPO is a fresh issue of Rs 720 crore and does not include any offer-for-sale (OFS) component.
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4. Lot size and minimum investment
Investors can bid for a minimum of 34 shares, requiring an investment of Rs 14,586 at the upper end of the price band.
5. Purpose of the Issue
The proceeds will primarily be used for the purchase and installation of cloud computing and data centre equipment, along with funding general corporate purposes.
6. Book running lead managers and registrar
DAM Capital Advisors Ltd. and Systematix Corporate Services Ltd. are the book running lead managers to the issue while MUFG Intime India Pvt Ltd. is the registrar to the offer.
7. Strong financial performance
- Revenue from operations rose to Rs 472.2 crore in FY26 from Rs 286.5 crore in FY24.
- Ebitda increased to Rs 234.2 crore from Rs 101.9 crore during the same period.
- Net profit jumped to Rs 120.8 crore in FY26 from Rs 13.6 crore in FY24.
- Ebitda margin expanded to 49.6% in FY26 from 35.6% in FY24.
8. About the Company
ESDS Software Solutions is an AI-enabled cloud and data centre services company offering cloud infrastructure, managed services, software solutions, and GPU-as-a-Service (GPUaaS). The company operates five Tier-III data centres across India and serves over 2,500 customers.
9. Valuation
At the upper end of the price band, the IPO is valued at 41.6 times FY26 earnings, implying a post-issue market capitalization of about Rs 5,028 crore. Brokerage firm Anand Rathi has assigned a "Subscribe for Long Term" rating to the issue, citing ESDS' strong positioning in cloud and AI infrastructure, improving profitability, and long-term growth potential.
10. Key risks
- Technological changes
- Dependence on Government entities and projects
- Performance of ESDS Cloud FZ-LLC
- • Cybersecurity and data security
- • Customer concentration
- • Assets pledged as security
- Service continuity and performance guarantees
- • Contingent liabilities
- • Financing agreement covenants
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