ESDS Software sets Rs 408-429 band for Rs 720 crore data centre IPO

The Development

ESDS Software Solution Limited has fixed the price band for its initial public offering at Rs 408 to Rs 429 per equity share, setting the terms for a Rs 720 crore issue that opens for public subscription on 28 August 2026. The red herring prospectus (RHP), filed with the Registrar of Companies and on the record with SEBI and the exchanges, values the offer at Rs 720 crore at the upper end of the band. Anchor investor bidding is scheduled for 27 August 2026, per the abridged prospectus, with the three-day book open from 28 August to 1 September 2026.

The issue is structured entirely as a fresh issue of equity shares, with no offer-for-sale component, aggregating up to Rs 720 crore (Rs 7,200.00 million), the abridged prospectus states. The face value is Rs 1 per share. DAM Capital Advisors Limited and Systematix Corporate Services Limited are the book-running lead managers, and MUFG Intime India Private Limited (formerly Link Intime India) is the registrar to the issue. The band and dates were surfaced through coverage on The Economic Times' IPO desk.

The Company

Incorporated in August 2005, ESDS Software Solution Limited describes itself, per the RHP, as an AI-enabled provider of cloud, managed services, data centre infrastructure and software solutions. Its portfolio spans Infrastructure-as-a-Service, managed services and Software-as-a-Service, serving customers across the banking and financial services, government and enterprise segments. The company discloses that it operates five Tier 3 data centres across India spanning more than 75,266 sq ft, and that it served 2,501 customers in the year to 31 March 2026. Its promoters, per the RHP, are Piyush Prakashchandra Somani, Komal Piyush Somani and the P.O. Somani Family Trust.

On the financials, the abridged prospectus reports total income of Rs 480.65 crore in FY26, up from Rs 376.64 crore in FY25 and Rs 292.14 crore in FY24. Revenue from operations was Rs 472.21 crore in FY26. Profit for the year rose to Rs 120.82 crore in FY26 from Rs 55.61 crore in FY25 and Rs 13.61 crore in FY24, per the restated consolidated accounts. The company discloses EBITDA of Rs 234.23 crore in FY26, an EBITDA margin of 49.60%, net worth of Rs 528.81 crore and a return on net worth of 22.85% for the year. All figures are as stated in the offer document; no independent valuation is offered here.

The Offer Structure

The offer is an all-fresh issuance, which means the entire Rs 720 crore raised flows to the company rather than to any selling shareholders. Investors can bid for a minimum of 34 equity shares and in multiples of 34 thereafter, per the offer terms; at the upper price band of Rs 429, one lot of 34 shares works out to Rs 14,586. The book opens on 28 August and closes on 1 September 2026, with anchor allocation on 27 August, the day before opening.

On the objects of the issue, the abridged prospectus states that Rs 576 crore (Rs 5,760.00 million) of the net proceeds 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, which the document caps at 25% of gross proceeds. The full red herring prospectus filed with SEBI carries the complete terms. Readers working through the arithmetic of a possible allotment can use Oquilia's lumpsum calculator or CAGR calculator; prior primary-market coverage sits on the Oquilia news desk.

Risk Factors

The abridged prospectus summarises the top ten internal risks disclosed in the RHP, several of which bear on the company's client and funding profile. The company discloses that revenue from government entities and government projects represented 27.37%, 29.52% and 34.04% of revenue from operations in FY26, FY25 and FY24 respectively, and that changes in government policies or budgetary allocations could adversely affect it.

The RHP lists client concentration as a risk: revenue from the top client and top ten clients represented 15.93% and 45.36% of revenue from operations in FY26. Among the risk factors the company discloses, a substantial portion of its assets is hypothecated or mortgaged to lenders - 96.72% of total current assets were hypothecated as at 31 March 2026 - which lenders may enforce in the event of a default. The company also flags that a failure to innovate in response to technological change, and any unauthorised access to its network or data, could each adversely affect its business. It further notes that its subsidiary ESDS Cloud FZ-LLC recorded losses of Rs 4.05 crore and Rs 6.02 crore in FY25 and FY24 before returning to a profit in FY26.

What Happens Next

From here the standard mechanics apply. Anchor investors bid on 27 August 2026, the day before the main book opens; the three-day subscription window then runs from 28 August to 1 September, with bids placed through the ASBA and UPI application process at the registered intermediaries. Category-wise subscription figures will be published by the exchanges during and at the close of the window.

Following the close, the basis of allotment is expected to be finalised on 2 September, per the schedule reported, with refunds or the unblocking of application money and the credit of shares to demat accounts to follow. The shares are expected to list on the NSE and BSE on 4 September 2026, subject to the schedule remaining unchanged. Each of these dates is a process step drawn from the offer schedule, not a forecast of demand or price.

FAQ

What is the price band and lot size?

The price band is Rs 408 to Rs 429 per equity share, per the RHP. The minimum bid is one lot of 34 shares, and in multiples of 34 thereafter. At the upper end of the band, one lot of 34 shares amounts to Rs 14,586. The face value of each share is Rs 1.

When does the issue open and close?

Anchor investor bidding is scheduled for 27 August 2026, and the public issue opens on 28 August and closes on 1 September 2026, per the abridged prospectus. Allotment is expected to be finalised on 2 September, with listing on the NSE and BSE expected on 4 September, subject to the schedule remaining unchanged.

What are the objects of the issue?

The offer is an entirely fresh issue aggregating up to Rs 720 crore, so the proceeds go to the company. Per the RHP, about Rs 576 crore of the net proceeds is proposed for the purchase and installation of cloud computing and data centre equipment and infrastructure, with the balance for general corporate purposes, which the document caps at 25% of gross proceeds.

Where can I read the RHP?

The red herring prospectus is on the record with SEBI and the exchanges. It is available on SEBI's website under Filings, and on the NSE and BSE public-issues pages. The abridged prospectus, containing the salient features, is filed alongside it.

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 the abridged prospectus filed on the exchanges. It was surfaced via coverage in The Economic Times.