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.

Key facts

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

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, Hy-Tech Engineers, Symbiotec Pharmalab, Lumino Industries, and today's Hindustan Copper OFS. For a fund-based route to similar themes, see our mutual fund planning guide.

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.