ESDS Software Solution opens Rs 720 crore IPO at Rs 408-429 band

The Development

ESDS Software Solution Limited, a Nashik-based cloud and data-centre company, opened its initial public offering on 28 August 2026, following the filing of its red herring prospectus dated 24 August 2026 with the Securities and Exchange Board of India (SEBI). The offer is a fresh issue of equity shares aggregating up to Rs 720 crore, per the RHP, and the price band has been set at Rs 408 to Rs 429 per share, per NSE data. The three-day subscription window closes on 1 September 2026.

The development was surfaced through coverage on the IPO desk of The Economic Times, which tracked the bidding. As of Day 2 of bidding on 31 August, the issue had been subscribed 22.75 times overall, per NSE data, with the non-institutional investor portion subscribed 64.39 times, the retail individual investor portion 17.69 times and the qualified institutional buyer portion 0.38 times. Anchor investors were allotted shares on 27 August, ahead of the public opening, per the offer document.

This is the company's first public issue, and the equity shares are proposed to be listed on both the BSE and the National Stock Exchange, with NSE as the designated stock exchange, per the RHP.

The Company

ESDS Software Solution describes itself in the RHP as "an AI-enabled cloud, managed services, Data Centre infrastructure and software solutions provider in India." The company discloses that it operates across three broad service lines: infrastructure as a service, which covers colocation and data-centre services alongside cloud services; managed services; and software as a service. It served 2,501 customers in Fiscal 2026, per the offer document, spanning banking and financial services, government and public-sector bodies, and other enterprises.

The company runs five data centres, in Nashik, Navi Mumbai, Bengaluru, Mohali and Noida, and discloses plans to open two more, in Kolkata and Sahibabad, per the RHP. On financials, the company discloses revenue from operations of Rs 472.21 crore in Fiscal 2026, up from Rs 361.34 crore in Fiscal 2025 and Rs 286.52 crore in Fiscal 2024. Profit for the year was Rs 120.82 crore in Fiscal 2026, against Rs 55.61 crore a year earlier, per the restated consolidated financial information in the offer document. EBITDA margin was 49.60% and net worth stood at Rs 528.81 crore as at 31 March 2026, per the RHP, while total borrowings had fallen to Rs 42.92 crore.

The promoters are Piyush Prakashchandra Somani, Komal Piyush Somani and the P.O. Somani Family Trust, per the offer document.

The Offer Structure

The IPO is entirely a fresh issue of equity shares of face value Re 1 each, aggregating up to Rs 720 crore, per the RHP; there is no offer-for-sale component, so all proceeds accrue to the company rather than to selling shareholders. The price band is Rs 408 to Rs 429 per share, per NSE data, and the book-built offer is open to qualified institutional buyers, non-institutional investors and retail individual investors. Retail applications are made for a minimum of one lot, with the exact lot size stated in the price band advertisement.

On the use of proceeds, the company discloses that Rs 576 crore is earmarked for the purchase and installation of cloud computing and other equipment and infrastructure for its data centres, with the balance for general corporate purposes, capped at 25% of gross proceeds. The book-running lead managers are DAM Capital Advisors and Systematix Corporate Services, and the registrar is MUFG Intime India, per the RHP. Readers working through the arithmetic of an allotment can use Oquilia's lumpsum calculator or CAGR calculator, and can find prior primary-market coverage on the Oquilia news desk.

Risk Factors

The RHP sets out the risks the company is required to disclose. Among the risk factors the company discloses, revenue from government entities and government projects represented 27.37%, 29.52% and 34.04% of revenue from operations in Fiscals 2026, 2025 and 2024 respectively, and the RHP notes that changes in government policies or budgetary allocations could adversely affect the business.

The RHP also lists customer concentration as a risk: revenue from the top client and top 10 clients represented 15.93% and 45.36% of revenue from operations in Fiscal 2026. The company discloses that its subsidiary ESDS Cloud FZ-LLC recorded losses in Fiscals 2025 and 2024 before returning to profit in Fiscal 2026, and that a substantial portion of its assets are hypothecated or mortgaged to lenders, with hypothecated current assets at 96.72% of total current assets as at 31 March 2026.

Further risks the company discloses include dependence on continuous innovation in a fast-changing technology market, the possibility of unauthorised access to its network or data, and exposure to macroeconomic and trade-policy changes in export markets, primarily the United Arab Emirates in Fiscal 2026. The offer document also records a civil suit by a former employee claiming Rs 18.48 crore. Investors are directed to the full risk-factors section of the RHP.

What Happens Next

With anchor allocation completed on 27 August and the public issue open from 28 August, the standard mechanics run to a close on 1 September, when the UPI mandate window ends at 5:00 p.m., per the offer document. After the close, the registrar, MUFG Intime India, finalises the basis of allotment, following which shares are credited to successful applicants and blocked funds are released for unsuccessful ones.

The equity shares are then admitted for trading on the BSE and NSE, with NSE as the designated stock exchange, per the RHP. The exact allotment and listing dates are set out in the exchange notices and the price band advertisement. Category-wise subscription figures continue to be updated on the NSE and BSE websites through the bidding window, and are the only official measure of demand.

FAQ

What is the price band for the ESDS Software Solution IPO?

The price band is Rs 408 to Rs 429 per share of face value Re 1, per NSE data. The offer is entirely a fresh issue aggregating up to Rs 720 crore, per the red herring prospectus, with no offer-for-sale component.

When does the issue open and close?

The public issue opened on 28 August 2026 and closes on 1 September 2026, per the offer document, with anchor allocation completed on 27 August. The UPI mandate confirmation window closes at 5:00 p.m. on the closing date.

How subscribed is the issue so far?

As of Day 2 of bidding on 31 August, the issue had been subscribed 22.75 times overall, per NSE data, with the non-institutional portion at 64.39 times, the retail portion at 17.69 times and the qualified institutional buyer portion at 0.38 times. Figures continue to update through the window.

Where can I read the RHP?

The red herring prospectus dated 24 August 2026 is available on SEBI's website and on the NSE and BSE websites. It contains the complete offer terms, restated financials and the full risk-factors section.

Should I apply for this IPO?

Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges - read it directly before making any decision.

This report is based on the red herring prospectus filed with SEBI and subscription data from the NSE. It was surfaced via coverage in The Economic Times.