ESDS’ IPO Litmus Test, Even Axes 350 Jobs & More
Can ESDS Ace The IPO Test? ESDS Software Solution’s public issue is all set to open for subscription later today.…
ESDS Software Solution is set to launch its IPO later today, aiming to raise capital for GPU investments and sovereign cloud ambitions. The company's IPO includes a fresh issue of shares worth ₹720 Cr, without an offer for sale. Anchor investors, including Motilal Oswal, Quant MF, JM Financial MF and Samco, have contributed ₹216 Cr to the IPO, with domestic mutual funds accounting for 82% of the total allotment.
ESDS reported robust financials in FY26, with revenue growth of 31% YoY and a net profit increase of 117% YoY. The company serves over 2,500 clients, including 170 banking entities and 100 government organizations. However, the IPO may face challenges due to escalating hardware prices and intense competition from global hyperscalers and domestic conglomerates.
Additionally, high customer concentration and government payment cycles pose ongoing working capital risks. Despite these challenges, ESDS must deliver a successful IPO to meet its financial goals.
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