ESDS Software Solution IPO: Price Band, Growth and Risks
ESDS Software Solution, an AI-enabled cloud and data-centre infrastructure provider, opens its ₹720-crore IPO on 28 August 2026 — a rare 100% fresh issue this week, meaning every rupee raised goes into the business rather than to existing shareholders cashing out.
ESDS operates five Tier-III data centres (Nashik, Navi Mumbai, Bengaluru, Mohali and Noida) under its proprietary "SWARAJ Cloud" platform, including GPU-as-a-Service offerings, serving 2,500+ customers across BFSI, government and enterprise segments with about 993 employees. Of the ~₹720 cr raised, ₹576 cr is earmarked for data-centre and cloud-computing equipment — direct capacity expansion — with the balance for general corporate purposes.
ESDS Software Solution, an AI-enabled cloud and data-centre infrastructure provider, opens its ₹720-crore IPO on 28 August 2026 — a rare 100% fresh issue this week, meaning every rupee raised goes into the business rather than to existing shareholders cashing out. Key facts Detail Particulars Bidding dates Anchor 27 Aug; issue opens 28 Aug, closes 1 Sept 2026 Price band ₹408–₹429 per share Lot size 34 shares (₹14,586 at lower band) Issue size ~₹720 cr — 100% fresh issue, no OFS Listing BSE & NSE, tentatively 4 September 2026 Lead managers DAM Capital Advisors, Systematix Corporate Services The business ESDS operates five Tier-III data centres (Nashik, Navi Mumbai, Bengaluru, Mohali and Noida) under its proprietary "SWARAJ Cloud" platform, including GPU-as-a-Service offerings, serving 2,500+ customers across BFSI, government and enterprise segments with about 993 employees. Of the ~₹720 cr raised, ₹576 cr is earmarked for data-centre and cloud-computing equipment — direct capacity expansion — with the balance for general corporate purposes. Financial snapshot FY Revenue Net profit FY24 ~₹286–292 cr ₹13.61 cr FY25 ~₹361–377 cr ₹55.61 cr FY26 ~₹472–481 cr ₹120.82 cr Net profit has roughly doubled every year, up 117% in FY26 alone — an unusually steep climb that's worth understanding rather than just celebrating (see risks below). One tracker also cites an EBITDA margin near 49.6%, ROE near 25%, ROCE near 33%, and low leverage (debt-to-equity 0.08); these weren't independently cross-verified across multiple sources, so treat them as indicative. Strengths A 20+ year operating track record, a multi-city Tier-III data-centre footprint, high margins, and a diversified, regulated-sector customer base. Because this is a fresh-issue-only IPO, promoters Piyush and Komal Somani (holding about 46% pre-issue, 39% post) aren't selling any shares — all proceeds are earmarked for growth. What to weigh Very steep recent profit growth (+117% in FY26) invites scrutiny of how sustainable that pace is going forward. Capex-heavy expansion: the bulk of proceeds funds new data-centre equipment, so execution and utilisation of that capacity matters for returns. Competitive market: India's data-centre and cloud space includes larger, better-capitalised players. Some leverage and contingent-liability figures come from a single source and weren't independently verified — check the RHP directly. GMP: what the pre-IPO chatter says Grey market premium estimates disagree sharply and change by the hour — one tracker showed about ₹285 (implying a price near ₹714, roughly 66% over the upper band), another showed ₹245, and a third listed GMP as "not yet started." This is unregulated, dealer-quoted sentiment, not exchange data — don't treat any single figure as a forecast. FAQs Why is a 100% fresh issue considered a plus? It means the company itself receives all the capital raised, rather than a portion going to existing shareholders exiting — generally a more growth-aligned structure than an OFS-heavy issue, though it's only one factor among many to weigh. When can I apply? Bidding opens 28 August and closes 1 September 2026, through the usual UPI/ASBA process on your broker's IPO section. More from this week's IPO calendar: Skyways Air Services (/insights/skyways-air-services-ipo-review) , Hy-Tech Engineers (/insights/hy-tech-engineers-ipo-review) , Symbiotec Pharmalab (/insights/symbiotec-pharmalab-ipo-review) , Lumino Industries (/insights/lumino-industries-ipo-review) , and today's Hindustan Copper OFS (/insights/hindustan-copper-ofs-2026-how-to-apply) . For a fund-based route to similar themes, see our mutual fund planning guide (/insights/mutual-fund-planning-guide-india) . Disclaimer: Informational only, not investment advice or a recommendation to apply. IPO investments carry allotment, listing-price and business risk — read the RHP and all disclosures carefully. Money n Wealth does not guarantee allotment, listing gains or returns. Investments are subject to market risks.
