2 days ago
ESDS IPO Subscription Surges Eightfold as NII, Retail Demand Leads
ESDS is a company that provides cloud computing and digital services.
It is selling shares to the public through an IPO.
By the second day, investors had asked for more than eight times the number of shares available.
Smaller investors and wealthy individual investors showed especially strong interest.
Large institutional investors had placed far fewer bids.
The IPO is priced between ₹408 and ₹429 per share.
ESDS plans to use much of the money to buy cloud equipment and improve its data centres.
The company reported higher profit and revenue in the latest fiscal year mentioned.
Its shares are expected to list on the BSE and NSE on September 4.
ESDS Software Solution’s ₹720 crore IPO was subscribed 8.08 times by 10:51 IST on its second bidding day.
Non-institutional investors subscribed their portion 22 times, while retail investors subscribed 6.72 times.
Qualified institutional buyer participation remained muted at 0.04 times the shares reserved.
The IPO received bids for 9.99 crore shares against 1.24 crore shares on offer, according to BSE data.
The fresh issue will fund cloud equipment and infrastructure, with ₹576 crore earmarked for purchases and installation.
- Who
- ESDS Software Solution and investors, particularly non-institutional and retail investors.
- What
- ESDS’s ₹720 crore initial public offering was subscribed 8.08 times by 10:51 IST on the second bidding day.
- Where
- The IPO is being offered in India, and ESDS is headquartered in Nashik with data centres in Airoli, Bengaluru, Mohali, and Nashik.
- When
- The update was recorded at 10:51 IST on the second day of bidding; the IPO was scheduled to close the following day and list on September 4.
- Why
- The IPO is raising funds mainly to purchase and install cloud computing equipment and other infrastructure.
Strong Investor Demand
Cautious Institutional Participation
Subscription pattern
Strong Investor Demand
Non-institutional investors and retail investors drove demand, subscribing 22 times and 6.72 times respectively.
Cautious Institutional Participation
Qualified institutional buyers placed bids for only 0.04 times the shares reserved for them, indicating limited participation from that category.
Market interpretation
Strong Investor Demand
The demand signals strong appetite for ESDS’s cloud and AI infrastructure growth story among public-market investors.
Cautious Institutional Participation
The muted QIB response shows that enthusiasm was not equally shared across all investor categories during the reported period.
Key facts
- Issue size
- ₹720 crore fresh issue
- Overall subscription
- 8.08 times by 10:51 IST on Day 2
- NII subscription
- 22 times
- Retail subscription
- 6.72 times
- QIB subscription
- 0.04 times
- Price band
- ₹408–₹429 per share
- Infrastructure allocation
- ₹576 crore from net proceeds
- Latest reported profit
- ₹120.8 crore in FY26, compared with ₹55.6 crore in the previous fiscal year
Sources
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