ESDS Software sets Rs 408-429 band for Rs 720 crore IPO
ESDS Software Solution has fixed a Rs 408-429 price band for its Rs 720 crore fresh-issue IPO, which opened on 28 August and closes on 1 September, per the RHP filed with SEBI.
The Development
ESDS Software Solution Limited, a Nashik-based cloud and data-centre operator, has opened its initial public offering, an entirely fresh issue of equity shares aggregating up to Rs 720 crore. Per the red herring prospectus dated 24 August 2026 filed with SEBI and the stock exchanges, the offer comprises new shares of face value Rs 1 each, with no offer-for-sale component. The company has fixed a price band of Rs 408 to Rs 429 per share through its pre-issue price band advertisement.
The three-day subscription window opened on Friday, 28 August 2026 and closes on Tuesday, 1 September 2026, per the RHP, with anchor-investor bidding held a day earlier on Thursday, 27 August. The shares are proposed to be listed on the BSE and the National Stock Exchange, with the NSE designated as the exchange for the offer. At the upper end of the band, the fresh issue implies roughly 1.68 crore equity shares. The development surfaced through coverage on the IPO desk at The Economic Times; for prior primary-market coverage, see the Oquilia /news desk.
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 is one of only two Indian players offering the full spectrum of GPU-as-a-service, cloud, managed services, data-centre infrastructure and software solutions, citing the Nexdigm Report. Its platform spans infrastructure-as-a-service, which includes colocation and data-centre services and cloud computing, alongside managed services and software-as-a-service. The company discloses that it served 2,501 customers in Fiscal 2026.
Per the RHP, ESDS operates five data centres in Nashik, Navi Mumbai, Bengaluru, Mohali and Noida, each granted "Tier 3" status by an independent certifier and covering in aggregate over 75,266 square feet, with guaranteed uptime of at least 99.95 per cent. The company discloses plans for two further data centres, in Kolkata and Sahibabad.
On the restated consolidated 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 rose to Rs 120.82 crore in Fiscal 2026 from Rs 55.61 crore and Rs 13.61 crore in the two preceding years, per the RHP, with EBITDA of Rs 234.23 crore and a return on net worth of 22.85 per cent.
The Offer Structure
Per the RHP, the offer is a fresh issue only, aggregating up to Rs 720 crore, with the promoters not selling any shares. The stated objects of the issue are the purchase and installation of cloud computing and other equipment and infrastructure for the company's data centres, for which Rs 576 crore of the net proceeds is earmarked, with the balance for general corporate purposes, capped at 25 per cent of the gross proceeds.
The promoters are Piyush Prakashchandra Somani, Komal Piyush Somani and the P.O. Somani Family Trust, who together held 45.86 per cent of the pre-issue capital, per the RHP. Named public shareholders disclosed in the document include the investors Mukul Mahavir Agrawal and Ashish Kacholia. The book-running lead managers are DAM Capital Advisors Limited and Systematix Corporate Services Limited, and the registrar is MUFG Intime India Private Limited (formerly Link Intime India). Readers working through the arithmetic of an allotment can use Oquilia's lumpsum calculator or CAGR calculator.
Risk Factors
The RHP sets out the company's own risk-factors section, and the abridged prospectus lists the top ten internal risks. Among them, the company discloses that revenue from government entities and government projects represented 27.37 per cent, 29.52 per cent and 34.04 per cent of revenue from operations in Fiscals 2026, 2025 and 2024, and that changes in government policies or budgetary allocations could adversely affect its business.
The RHP also lists client concentration as a risk: the company discloses that its top client and top ten clients accounted for 15.93 per cent and 45.36 per cent of Fiscal 2026 revenue from operations. Among the other risk factors the company discloses are the possibility of unauthorised access to its network or data, its dependence on continuous and seamless customer access to its services, and a failure to keep pace with technological change.
The document further discloses that a substantial portion of its assets is hypothecated or mortgaged to lenders, with hypothecated current assets at 96.72 per cent of total current assets as at 31 March 2026, and that its overseas subsidiary ESDS Cloud FZ-LLC reported losses in Fiscals 2025 and 2024. These are the company's stated disclosures, not an assessment by this desk.
What Happens Next
Per the RHP, the subscription window closes on 1 September 2026, with the UPI mandate confirmation deadline at 5:00 p.m. that day. In the standard sequence that follows, the registrar finalises the basis of allotment, after which unblocking of application amounts for unsuccessful applicants and crediting of shares to successful applicants take place, ahead of listing on the NSE and BSE. Applications are made through the UPI-backed ASBA process.
Exchange subscription figures, category-wise across qualified institutional buyers, non-institutional investors and retail individual investors, are published by the NSE and BSE during the bidding window and at close. The listing price, when the shares debut, will be an exchange fact stated against the issue price, with the precise allotment and listing dates set out in the exchange notices.
FAQ
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.
What is the price band and issue size?
Per the price band advertisement, the band is Rs 408 to Rs 429 per equity share of face value Rs 1. The RHP states the offer is an entirely fresh issue aggregating up to Rs 720 crore, with no offer-for-sale component, so the proceeds go to the company rather than to selling shareholders.
When does the issue open and close?
Per the RHP, anchor bidding was held on 27 August 2026, the issue opened on 28 August 2026 and closes on 1 September 2026. The UPI mandate confirmation deadline is 5:00 p.m. on the closing date.
What are the objects of the issue?
The RHP states Rs 576 crore of the net proceeds is earmarked for cloud computing and other equipment and infrastructure for the company's data centres, with the balance for general corporate purposes, capped at 25 per cent of the gross proceeds.
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, as well as on the websites of the company and the lead managers. It contains the full financials, objects of the issue and risk-factors section.
This report is based on the red herring prospectus filed with SEBI and the company's price band advertisement. It was surfaced via coverage on the IPO desk at The Economic Times.