ESDS Software Solution jumps 5%, extends 6-session rally; shares up 287% from IPO price

ESDS Software Solution's shares surged 5.03% on Friday, reaching Rs 1,661.75 and marking six consecutive days of gains. The stock has climbed nearly 287% since its initial public offering (IPO) at Rs 429, delivering a remarkable return for investors within just six trading days. The strong performance followed a blockbuster debut and reflects optimism surrounding India's expanding data-center and digital infrastructure sector.

ESDS made its market debut at Rs 757, a 76.5% premium over its issue price. On its first day, the stock closed at Rs 908.40, a gain of nearly 112% from the IPO price. Piyush Somani, Chairman and Managing Director of ESDS Software Solutions Limited, expressed confidence in India's potential to add 30-40 GW of new data center capacity over the next decade, driven by a growing generation base, renewable energy investments, and a supportive policy environment.

The company's IPO was exceptionally well-received, with subscriptions 136 times overall. The Qualified Institutional Buyer (QIB) portion saw subscriptions over 261 times, while the retail and non-institutional investor segments were subscribed around 193 times and 40 times, respectively. ESDS raised Rs 216 crore from anchor investors in the IPO, allotting 50.34 lakh shares at Rs 429 apiece.

The funds raised are earmarked for strengthening the company's digital infrastructure capabilities, with around Rs 576 crore proposed for the purchase and installation of cloud-computing equipment and other data-center infrastructure. The remaining proceeds will be used for general corporate purposes. This investment follows a period of accelerating demand for cloud computing, data storage, cybersecurity, and digital infrastructure, potentially creating a favorable operating environment for companies like ESDS.

ESDS Software Solution provides Infrastructure-as-a-Service (IaaS), Managed Services, and Software-as-a-Service (SaaS) solutions across the digital infrastructure ecosystem. The company serves customers in India and international markets, including key clients in banking and financial services, government, and enterprise segments.

Additionally, ESDS' financial performance improved in FY26, with total income rising 28% year-on-year to Rs 480.65 crore, compared to Rs 376.64 crore in FY25. More notably, profitability surged, with profit after tax (PAT) more than doubling to Rs 120.82 crore, marking a 117% increase from Rs 55.61 crore in the previous financial year.