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Listed
IT - Hardware
ESDS Software Solution Limited IPO
₹720 Cr · Fresh Issue · IT - Hardware
Price Band
₹408 – ₹429
Lot: 800 shares (₹343,200)
GMP (Grey Market)
₹43 (+27.22%)
Est. listing ₹472
Issue Size
₹720 Cr
Fresh Issue
Market Cap
₹5028.35 Cr
At upper band
P/E Ratio
41.6x
P/S: 10.6x
Listing Date
04 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
28 Aug 2026
✓
Closes
01 Sep 2026
✓
Allotment
2 Sep 2026
✓
Refund
3 Sep 2026
✓
Listing
04 Sep 2026
IPO India Hub: Subscribe
Conviction
7/10
The company trades at 1.46× the IT/Software sector midpoint with a 25.1% net margin and exceptional 197.9% PAT CAGR, meeting Subscribe criteria. Key risk: promoter holding drops to 39.47% post-issue, below the 60% threshold typically preferred for conviction support.
Listing Performance
Issue Price
₹429
Allotment price
Listing Price
₹746.3
+73.96% on listing day
Current Price (CMP)
₹1266
+195.1% vs issue
Listed On
04 Sep 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Exceptional profit growth trajectory
Net profit surged from ₹13.6 Cr (FY-2) to ₹120.8 Cr (FY0), a 197.9% two-year CAGR that far exceeds the 20% growth benchmark. This acceleration reflects strong operational leverage and market demand for the company's data centre and cloud infrastructure services.
✓ Strength
Strong margins and capital efficiency
Net profit margin of 25.1% and EBITDA margin of 42.86% are well above typical IT services norms, while ROCE of 24.73% and minimal debt (D/E 0.15x) demonstrate efficient capital deployment. The company generates substantial cash relative to its asset base.
⚠ Risk
Promoter dilution post-listing
Promoter holding falls from 46.06% to 39.47% after the issue, dropping below the 60% threshold associated with strong founder alignment. This dilution may weaken governance perception and reduce insider conviction signalling to public shareholders.
⚠ Risk
Data centre capex execution risk
₹576 Cr (80% of proceeds) is earmarked for data centre equipment and infrastructure. Delays in deployment, cost overruns, or slower-than-expected utilization could pressure returns and delay margin expansion.
₹ Valuation
Valuation at sector midpoint premium
P/E of 41.6× is 1.46× the IT/Software midpoint (28.5×), placing it in the Subscribe zone given the 25.1% NPM exceeds the 15% threshold. However, P/S of 10.6× is elevated; investors should monitor revenue conversion and margin sustainability post-capex.
👁 Watch
Data centre utilization and capex ROI
Track quarterly capex deployment pace, data centre utilization rates, and EBITDA margin trends over the next 2–3 quarters to confirm the company can convert ₹576 Cr infrastructure investment into profitable revenue growth.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "ESDS Software Solution Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹472.21 Cr
Net Profit
₹120.82 Cr
Industry
IT - Hardware
Issue Type
Fresh Issue
Promoters
PIYUSH PRAKASHCHANDRA SOMANI, KOMAL PIYUSH SOMANI AND P.O. SOMANI FAMILY TRUST
Lead Managers
DAM Capital Advisors and Systematix Corporate Services
Quick Actions
Frequently Asked Questions
Subscribe. The company trades at 1.46× the IT/Software sector midpoint with a 25.1% net margin and exceptional 197.9% PAT CAGR, meeting Subscribe criteria. Key risk: promoter holding drops to 39.47% post-issue, below the 60% threshold typically preferred for conviction support.
The current grey market premium (GMP) is ₹43, which is 27.22% above the upper band price of ₹429. This implies an estimated listing price of around ₹472. GMP is informal and unregulated — treat it as a sentiment indicator, not a guarantee.
The minimum lot size is 800 shares. At the upper band price of ₹429, the minimum investment per retail application is ₹343,200. You can apply for up to 13 lots (₹4,461,600) under the retail category (up to ₹2 lakh).
The IPO opens on 28 Aug 2026. It closes on 01 Sep 2026. Allotment is expected on 2 Sep 2026. Refunds initiate on 3 Sep 2026. Listing on BSE and NSE is on 04 Sep 2026.
The lead managers for the IPO are DAM Capital Advisors and Systematix Corporate Services. Check the SEBI filing for the registrar details.
The IPO listed on 04 Sep 2026 at ₹746.3 against an issue price of ₹429 (+73.96% on listing day). The current market price (CMP) is approximately ₹1266 (+195.1% vs issue).
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 01 Sep 2026. The minimum investment is ₹343,200 for one lot (800 shares). The company trades at 1.46× the IT/Software sector midpoint with a 25.1% net margin and exceptional 197.9% PAT CAGR, meeting Subscribe criteria. Key risk: promoter holding drops to 39.47% post-issue, below the 60% threshold typically preferred for conviction support.
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 01 Sep 2026. The IPO is priced at a P/E of 41.6x. Market cap at issue price is ₹5028.35 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The minimum lot is 800 shares at ₹429 each, costing ₹343,200 per application. The issue closes on 01 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'ESDS Software Solution Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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