5 days ago
ESDS Software IPO Fully Subscribed on Opening Day
ESDS Software Solution is selling shares to the public to raise money.
Its IPO opened on August 28 and was fully subscribed within about three hours.
This means investors applied for at least as many shares as the company offered.
Retail investors and non-institutional investors showed strong interest.
Qualified institutional buyer bids were reported as minimal at the time of reporting.
The company set each share’s price between Rs 408 and Rs 429.
Its shares are expected to list on the NSE and BSE on September 4.
Analysts at Anand Rathi recommended the IPO for long-term investors, but grey market prices can change and do not guarantee profits.
ESDS Software Solution’s Rs 720-crore IPO was subscribed 1.27 times within three hours of opening on August 28.
The company raised Rs 216 crore from anchor investors and set a price band of Rs 408–429 per share.
Retail investors subscribed 1.72 times, while non-institutional investors subscribed 1.90 times; QIB bids were reported at 0 times.
The IPO comprises 1.68 crore fresh equity shares and has no offer-for-sale component.
Anand Rathi Research recommended subscribing for the long term, citing cloud and AI infrastructure growth and improving profitability.
- Who
- ESDS Software Solution, backed by investors including Ashish Kacholia and Mukul Agrawal, is conducting the IPO.
- What
- The company launched a Rs 720-crore IPO that was subscribed 1.27 times on its opening day.
- Where
- The shares are being offered in India’s primary market and are expected to list on the NSE and BSE.
- When
- The IPO opened on August 28 and is scheduled to close on September 1; listing is expected on September 4.
- Why
- ESDS Software Solution is raising funds through the issuance of 1.68 crore fresh equity shares.
Key facts
- Issue size
- Rs 720 crore
- Price band
- Rs 408–429 per share
- Anchor investment
- Rs 216 crore
- Opening-day subscription
- 1.27 times
- Retail lot
- 34 shares, requiring Rs 14,586 at the upper price band
- Grey market premium
- 74.83%, implying an estimated price of Rs 750; grey market premiums do not guarantee profits
- Expected listing
- September 4 on NSE and BSE
Quotes
Anand Rathi Research Team
Research team that issued a Subscribe – Long Term recommendation on the IPO
“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.”
financialexpress.com
Sources
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