ESDS Hits Upper Circuit For Fourth Straight Day, Rises To 3.3X IPO Price

Enterprise cloud and AI company ESDS Software Solution's stock climbed 10% to an upper circuit for the fourth consecutive day on September 9, 2021, reaching over three times its IPO price. The stock is currently locked at a 10% upper circuit of ₹1,418.50 on the BSE, with a market capitalization of ₹16,626.38 Cr ($1.75 Bn). On the NSE, the stock is trading at ₹1,438.85 as of 15:07 IST, trading 3.3 times its IPO price of ₹429 apiece on the BSE.

This represents a 90% increase from its listing price of ₹746.30. ESDS debuted on September 4 at ₹757 on the NSE and ₹746.30 on the BSE, both at a premium over their issue prices. The shares have hit their 20% upper circuit limits of ₹908.40 on the NSE and ₹895.55 on the BSE since the listing day. ESDS raised ₹720 Cr through its IPO, which was fully subscribed within hours and had an oversubscription ratio of 135.88X.

The company's stock is diversified across enterprise, government, and BFSI customers, with 55.1%, 27.4%, and 17.5% of its business, respectively. ESDS is set to benefit from India's growing cloud and AI infrastructure market, with the cloud market projected to grow at a 23.6% CAGR through FY30. Choice Institutional Equities has initiated coverage on ESDS with a 'Buy' rating and a target price of ₹1,550, indicating potential further upside for the stock.