Digital Infrastructure firm ESDS Software Solution’s initial public offering, which opened today, August 28, has been fully booked within just three hours of opening. So far, the issue has been subscribed 1.27 times. 

Backed by ace investors like Ashish Kacholia and Mukul Agrawal, the company raised Rs 216 crore from anchor investors. ESDS has fixed the issue price band at Rs 408 to Rs 429 per share. 

As of the time of reporting, the Qualified Institutional Buyers (QIBs) portion had received minimal bids, amounting to a subscription of 0 times, while the retail portion was subscribed 1.72 times, and the non-institutional investor (NII) category was subscribed 1.90 times.

ESDS Software Solution IPO: Offer Size and BRLMs

The AI-enabled IT service firm aims to raise Rs 720 crore from the Indian primary markets via the issuance of 1.68 crore fresh equity shares of Rs 1 each. The issue has no offer-for-sale component. 

The IPO is being handled by DAM Capital Advisors and Systematix Corporate Services, while MUFG Intime India is the registrar to the issue. 

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ESDS Software Solution IPO: Lot size

Retail investors can bid for a minimum of one lot, comprising 34 shares, equating to an investment of Rs 14,586, while the maximum they can bid for is 13 lots. Small high-net-worth individuals can bid for a minimum of 14 and a maximum of 68 lots. The lower cap for Big HNI is set at 69 lots. 

ESDS Software Solution IPO: GMP at 75%

As per the latest update, shares of ESDS Software are trading at a grey market premium (GMP) of 74.83% in the unlisted markets, translating into an estimated listed price of Rs 750, based on the upper end of the share price band.

This translates into gains of Rs 321 per share and a profit of Rs 10,914 per lot. However, it is important to note that GMP does not guarantee profit and fluctuates based on market mood and sentiment.

ESDS Software Solution IPO: Subscription timeline

The ESDS Software Solution IPO, which opened for public bidding on August 28, will close its bidding window on September 1. Its share allotment process is expected to be completed by September 2, and investors are likely to be credited their shares and refunds by September 3. 

ESDS Software Solution is expected to list on NSE and BSE on September 4. 

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ESDS Software Solution IPO: Expert view 

Giving the issue a “Subscribe – Long Term” rating, Anand Rathi Research Team said, “At the upper price band, the company is valued at 41.6x FY26 P/E, implying post-issue market capitalisation of Rs 5,028.4 crore. Given the strong growth potential of the Indian cloud and AI infrastructure market, the company’s integrated offerings, and improving profitability, we believe the premium valuation is justified to an extent.”