ESDS Software Shares List At 76% Premium, Hit 20% Upper Circuit

Mumbai, September 4: Shares of ESDS Software Solution made a blockbuster debut on the stock exchanges on Friday, listing at a premium of more than 76% over the IPO price following overwhelming demand for the public issue. The shares then hit the 20% upper circuit. 

The stock debuted at Rs 757 per share on the NSE, representing a 76.46% premium over the upper end of its IPO price band of Rs 429. On the BSE, ESDS Software shares opened at Rs 746.30, a premium of 73.96%. Following the listing, the company’s market capitalisation stood at about Rs 8,747 crore. 

ESDS Software IPO sees massive demand 

The strong market debut came after the company’s Rs 720-crore initial public offering received an overwhelming response from investors. The issue, which was open for subscription from August 28 to September 1, was subscribed 135.88 times overall. 

Demand was particularly strong among institutional investors, with the qualified institutional buyers’ portion subscribed 261.51 times. The non-institutional investor category was subscribed 192.94 times, while the retail portion was subscribed 39.64 times. 

ESDS Software Solution had fixed the IPO price band at Rs 408-429 per share. The company also raised Rs 216 crore from anchor investors ahead of the issue. 

Why investors were bullish on ESDS Software 

The stock made a splash on its debut before hitting the upper circuit. Source: NSE 

ESDS Software Solution operates across AI-enabled cloud services, managed services, data-centre infrastructure and software solutions. Analysts had highlighted the company’s positioning to benefit from the expansion of India’s cloud and data-centre industry. 

Brokers had assigned a ‘Subscribe’ rating to the IPO, citing the company’s growth prospects and improving financial profile. At the upper end of the IPO price band, ESDS was valued at around 41.6 times FY26 earnings and 13.2 times EV/EBITDA on a post-issue basis. 

The company delivered strong growth between FY24 and FY26, with revenue, EBITDA and profit after tax recording CAGRs of 28.4%, 51.6% and 186.9%, respectively. The improvement was supported by operating leverage and a better business mix, according to the brokers. 

The sharp listing gain means investors who received shares in the IPO are already sitting on substantial gains. However, the stock’s debut valuation is significantly higher than the IPO price, which raises the bar for future earnings growth. 

The strong subscription numbers and growth prospects provide a positive backdrop. 

Source

• NSE