ESDS IPO Subscribed 8X On Day 2, NII Portion Booked 22X

Enterprise cloud and AI company ESDS Software Solution witnessed a surge in demand for its IPO, with subscribed shares exceeding eight times the available shares on the second day of bidding. The National Institutional Investors (NIIs) played a significant role, accounting for 22 times the subscribed shares in their category. NIIs placed bids for 5.82 Cr shares, nearly five times the reserved 26.47 Lakh shares.

Within this segment, investors bidding above ₹10 Lakh subscribed 21.39X, while those with bids between ₹2 Lakh and ₹10 Lakh subscribed 23.22X. Retail investors also contributed significantly, placing bids for 4.15 Cr shares, which amounted to 6.72X the reserved 61.76 Lakh shares. However, Qualified Institutional Buyers (QIBs) participation was minimal, with only 1.29 Lakh shares subscribed against the 35.29 Lakh shares available, resulting in a subscription of 0.04X.

ESDS' IPO provides Indian public market investors with exposure to the burgeoning cloud and AI infrastructure market, driven by enterprises and government organizations adopting AI technologies. The IPO was subscribed 2.1X on the first day, with NIIs, retail investors, and QIBs accounting for 3.51X, 2.69X, and 0.01X respectively.

ESDS’ ₹720 Cr IPO concludes tomorrow, with shares expected to list on BSE and NSE on September 4. The company aims to list shares in the range of ₹408-₹429 per share, targeting a valuation of around ₹5,028 Cr ($526.8 Mn) at the higher end. ESDS, founded in 2005 and based in Nashik, offers cloud computing, data centre, managed services, and AI-driven digital solutions to government and enterprise customers.

The company plans to utilize ₹576 Cr from net proceeds to upgrade cloud computing equipment and infrastructure at its data centers in Airoli, Bengaluru, Mohali, and Nashik. Prior to the public issue, ESDS raised ₹216 Cr from anchor investors by selling 50.3 Lakh shares to 19 entities at ₹429 each. ESDS reported a consolidated net profit of ₹120.8 Cr in FY26, a significant increase from the ₹55.6 Cr profit in FY25. Operating revenue also rose by 30.7% to ₹472.2 Cr from ₹361.3 Cr in FY25.