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ESDS Software Solution Shares Surge 200% After IPO Listing
ESDS Software Solution sold shares to the public at ₹429 each.
After it began trading, the price rose very quickly.
By 8 September, the shares reached ₹1,289.55, about three times the IPO price.
The company provides cloud, data-centre, managed-service and software solutions.
Its reported revenue and profit increased between FY24 and FY26.
One brokerage believes the company could grow further and set a target price of ₹1,550.
Another market expert advised current investors to take some profits and warned new buyers not to chase the sharp rise.
The stock may be affected by how well the company expands and delivers on its AI contract.
ESDS Software Solution shares reached a 20% upper circuit of ₹1,289.55 on 8 September, up 201% from the IPO price of ₹429.
The stock was listed on 4 September at ₹757 on the NSE and ₹746.30 on the BSE, both substantially above the issue price.
The IPO attracted 100 times subscription between 28 August and 1 September.
Choice Equity Broking initiated coverage with a buy recommendation and a ₹1,550 target price.
Swastika Investmart advised existing investors to consider partial profit-booking and newcomers to wait for a possible pullback toward ₹600–650.
- Who
- ESDS Software Solution, Choice Equity Broking, and Swastika Investmart are central to the report.
- What
- ESDS Software Solution shares rose to a 20% upper circuit, reaching ₹1,289.55 and gaining about 201% from the IPO price.
- Where
- The shares traded on India’s National Stock Exchange and Bombay Stock Exchange.
- When
- The latest reported move occurred on Tuesday, 8 September, after the stock listed on 4 September.
- Why
- The rise reflects strong post-listing demand and investor expectations around the company’s cloud, data-centre, managed-services and AI infrastructure businesses.
Bullish outlook
Cautious approach
Future share performance
Bullish outlook
Choice Equity Broking gave the stock a buy recommendation and set a ₹1,550 target, citing exposure to India’s cloud, data-centre and AI infrastructure expansion.
Cautious approach
Swastika Investmart’s Shivani Nyati recommended partial profit-booking at current levels and suggested that new investors wait for a pullback rather than chase the rally.
Growth expectations
Bullish outlook
Choice expects strong revenue, EBITDA and profit growth through FY29, supported by core-business momentum and the ramp-up of AI infrastructure revenue.
Cautious approach
The cautionary view emphasizes the stock’s steep rise and recommends retaining existing holdings only with a stop-loss around ₹650–680.
Key facts
- IPO issue price
- ₹429 per share
- 8 September upper circuit
- ₹1,289.55
- NSE listing price
- ₹757
- BSE listing price
- ₹746.30
- IPO subscription
- 100 times
- Choice Equity Broking target
- ₹1,550
- Reported AI contract
- $1.25 billion
Quotes
Choice Equity Broking
Brokerage firm providing research and investment recommendations on ESDS Software Solution
“Our 18 times FY28E EV/EBITDA valuation implies nearly 31 times FY28E forward P/E, which we believe appropriately reflects ESDS’s strong growth profile. Successful execution and faster ramp-up of the AI contract could provide further upside to earnings and valuation”
livemint.com
“Growth is underpinned by capacity expansion, deeper customer monetisation and operating leverage, with the $1.25 billion AI contract adding a significant new leg to the earnings trajectory”
livemint.com
Sources
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