ESDS Software Solutions IPO has wrapped up its second day of bidding, attracting healthy investor participation as the issue was subscribed 24.49 times. The IPO, which opened for bidding on August 28, was oversubscribed on its first day of bidding.
However, the Qualified Institutional Buyers (QIBs) portion remains yet to be fully subscribed. The cloud computing company’s offer is an entirely fresh issue as the company aims to raise Rs 720 crore via the issuance of 1.68 crore shares of Rs 1 each.
The share price band for the issue is fixed at Rs 408 to Rs 429.
ESDS Software Solutions IPO: QIB undersubscribed on Day 2
Backed by ace investors like Ashish Kacholia and Mukul Agrawal, the ESDS Software IPO has received bids for 30.25 crore shares against its offer of 1.23 crore shares, reflecting an oversubscription of 24.49x.
The non-institutional investor segment is witnessing high investor interest as it has been oversubscribed 69.73x, achieving bids for 18.45 crore shares against its offer of 26.47 lakh shares. The retail investor segment witnessed strong participation as well being subscribed 18.69x, receiving bids for 11.53 crore shares against its demand of 61.76 lakh.
However, the QIB segment is yet to be fully subscribed, as on day two, it received bids for 25.54 lakh shares against its offer of 35.29 lakh shares, equating to a subscription of 0.72x.
ESDS Software Solution IPO: Day 2 subscription snapshot
So far, the ESDS Software Solutions IPO has received bids worth Rs 12,985.82 crore and attracted more than 29 lakh applications
| Investor Category | Subscription (Day 2) |
| Qualified Institutional Buyers (QIBs) | 0.72x |
| Non-Institutional Investors (NIIs) | 69.73x |
| Retail Individual Investors (RIIs) | 18.68x |
| Overall | 24.49x |
ESDS Software Solution IPO: GMP at 74%
In the unlisted market, its shares are trading at a grey market premium of Rs 319 or 74.36%, suggesting its listing price at Rs 748, based on the upper end of the price band.
However, it is important to know that GMP is not a regulated indicator of listing price and is highly vulnerable to price manipulation.
ESDS Software Solution IPO: Subscription timeline
The Maharashtra-based firm will close its bidding window on September 1, and the share allotment process is likely to be completed by September 2. Beneficiaries are likely to be credited with their shares and refunds by September 3, and the company is expected to list on NSE and BSE on September 4.
DAM Capital Advisors and Systematix Corporate Services are the investment bankers to the offer, and MUFG Intime India is the registrar of the issue.