ESDS Touches Upper Circuit Again, Now Up 306% From IPO Price

ESDS Software Solution witnessed a remarkable post-listing surge, reaching the upper circuit for a sixth straight trading day and soaring more than four times its initial public offering (IPO) price. The enterprise cloud and AI infrastructure provider's shares surged 10% to an intraday high of ₹1,740.40 on the National Stock Exchange (NSE), before cooler trading saw the stock settle 9.7% higher at ₹1,735 per share as of 14:00 IST.

At its peak, ESDS was trading 305.7% above its IPO price of ₹429 per share. On the Bombay Stock Exchange (BSE), the stock remained at the 10% upper circuit of ₹1,716.35, reflecting a 300.1% jump from its issue price, with its market capitalization now valued at ₹20,117.5 crore (approximately $xx billion). ESDS debuted on the NSE on September 4 at ₹757, a 76.5% premium over its issue price, and on the BSE at ₹746.30, nearly 74% above its IPO price.

The stock promptly hit its 20% upper circuit at ₹908.40 on the NSE and ₹895.55 on the BSE on its listing day and has maintained this level in every subsequent trading session. After three consecutive sessions at the 20% upper circuit, the circuit filter was lowered to 10%. Regulatory scrutiny has also been drawn to the stock's sharp price movement, with the BSE seeking clarification from ESDS regarding any undisclosed information that may explain the surge.

The company denied receiving any such information, stating that the share price and trading volumes were consistent with those typically observed in a newly listed security. ESDS' ₹720 crore IPO, comprising a fresh issue of shares, was subscribed 135.88 times during its three-day bidding period. The company raised ₹216 crore from anchor investors by allotting 50.3 lakh shares to 19 entities at ₹429 each, with the anchor investors including Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Quant Mutual Fund, ITI Mutual Fund, and JM Flexicap Fund.

Founded in 2005, ESDS provides cloud computing, data center, managed services, and AI-led digital solutions to government and enterprise customers in Nashik, Maharashtra. The company intends to utilize ₹576 crore from its net IPO proceeds to acquire and install cloud computing equipment and other infrastructure at its data centers in Airoli, Bengaluru, Mohali, and Nashik.

Net profit for ESDS more than doubled to ₹120.8 crore in fiscal year 2026 from ₹55.6 crore in the previous fiscal year, while operating revenue increased 30.7% to ₹472.2 crore from ₹361.3 crore in fiscal year 2025.