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ESDS IPO Books Eightfold Demand on Day Two

Strong retail and non‑institutional bidding contrasted with muted institutional interest as the company will use most funds to buy data‑centre and cloud equipment.

Overview

  • As of 10:51 IST on Monday, August 31, the ESDS Software Solution public offer was 8.08 times subscribed based on BSE data, driven by heavy early bids from non‑institutional and retail investors.
  • The non‑institutional investor segment was the main driver, showing about 22 times demand against its allocation, while qualified institutional buyers had taken up only a tiny fraction of their portion.
  • ESDS completed an anchor placement before the public window that raised roughly ₹216 crore and opened the fresh‑issue IPO (₹408–₹429 per share) to raise about ₹720 crore through approximately 1.68 crore shares.
  • The company plans to use about ₹576 crore of the proceeds to buy and install cloud computing equipment at its Airoli, Bengaluru, Mohali and Nashik data centres, with the rest for general corporate purposes.
  • ESDS reported stronger FY26 results with consolidated net profit rising to ₹120.8 crore and revenue up about 31% to ₹472.2 crore, and the stock is set to list on the BSE and NSE on September 4 which could test early aftermarket demand given the skewed investor mix.