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Listed
IT - Hardware
ESDS Software Solution Limited IPO
₹720 Cr · Fresh Issue · IT - Hardware
Price Band
₹408 – ₹429
Lot: 1200 shares (₹514,800)
GMP (Grey Market)
—
No GMP data yet
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 demonstrates exceptional profitability with 25.1% net margins and PAT CAGR of 197.9% over two years, supported by a P/E of 41.6x that is only 1.46× the IT/Software sector midpoint—within the Subscribe threshold. Key risk: promoter holding drops to 39.47% post-issue, below the 60% threshold typically favored, and the company operates in a capital-intensive data centre segment where execution on ₹576 Cr capex deployment is critical.
Listing Performance
Issue Price
₹429
Allotment price
Listing Price
₹746.3
+73.96% on listing day
Current Price (CMP)
₹1716.35
+300.1% 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, while revenue grew at a more measured 28.3% CAGR. This indicates strong operational leverage and margin expansion in the data centre and IT infrastructure business.
✓ Strength
Strong balance sheet and cash generation
Debt/Equity ratio of 0.15x is conservative, and ROCE of 24.73% with EBITDA margin of 42.86% demonstrate efficient capital deployment. The company is generating substantial cash relative to its asset base, reducing refinancing risk.
⚠ Risk
Promoter stake dilution post-listing
Promoter holding falls from 46.06% pre-issue to 39.47% post-issue, dropping below the 60% threshold associated with strong governance signals. This dilution may raise questions about long-term strategic control and alignment with minority shareholders.
⚠ Risk
Capex execution and data centre competition
The company plans to deploy ₹576 Cr (80% of net proceeds) into data centre equipment and infrastructure. Execution delays, cost overruns, or slower-than-expected utilization could pressure returns; competition from larger, established players (AWS, Azure, Jio) in Indian cloud infrastructure is intensifying.
₹ Valuation
Valuation at sector midpoint premium justified
P/E of 41.6x is 1.46× the IT/Software sector midpoint of 28.5x, placing it within the Subscribe range (≤1.5× midpoint) given NPM of 25.1% exceeds the 15% threshold. P/S of 10.6x is elevated but reflects high-margin recurring revenue from data centre services.
👁 Watch
Monitor data centre utilization rates
Post-listing, track quarterly data centre capacity utilization, average revenue per rack, and customer concentration to assess whether the ₹576 Cr capex is generating expected returns and whether the company can sustain 25%+ net margins as it scales.
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 demonstrates exceptional profitability with 25.1% net margins and PAT CAGR of 197.9% over two years, supported by a P/E of 41.6x that is only 1.46× the IT/Software sector midpoint—within the Subscribe threshold. Key risk: promoter holding drops to 39.47% post-issue, below the 60% threshold typically favored, and the company operates in a capital-intensive data centre segment where execution on ₹576 Cr capex deployment is critical.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
The minimum lot size is 1200 shares. At the upper band price of ₹429, the minimum investment per retail application is ₹514,800. You can apply for up to 13 lots (₹6,692,400) 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 ₹1716.35 (+300.1% vs issue).
Our analysis recommends <strong>Subscribe</strong>. The fundamentals support applying before the issue closes on 01 Sep 2026. The minimum investment is ₹514,800 for one lot (1200 shares). The company demonstrates exceptional profitability with 25.1% net margins and PAT CAGR of 197.9% over two years, supported by a P/E of 41.6x that is only 1.46× the IT/Software sector midpoint—within the Subscribe threshold. Key risk: promoter holding drops to 39.47% post-issue, below the 60% threshold typically favored, and the company operates in a capital-intensive data centre segment where execution on ₹576 Cr capex deployment is critical.
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 1200 shares at ₹429 each, costing ₹514,800 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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