Maharashtra-based ESDS Software Solution, a prominent enterprise cloud and AI ecosystem provider, is set to launch its Initial Public Offering (IPO) on August 28. The public issue aims to raise Rs 720 crore and will be open for subscription until September 1.
IPO Dates and Price Band
The ESDS Software Solution IPO will commence on August 28 and conclude on September 1. The company has fixed the price band for the offering at Rs 408 to Rs 429 per equity share. At the upper end of this band, ESDS Software Solution will be valued at Rs 5,028.3 crore. Potential retail investors can apply for a minimum of 34 equity shares, with subsequent applications in multiples of 34.
The one-day anchor book for institutional investors is scheduled to open on August 27. Share allotment is anticipated to be finalized by September 2, with the company expected to list on the bourses on September 4.
Issue Details and Use of Funds
The entire Rs 720 crore IPO is a fresh issue, meaning all proceeds will directly go to the company. This marks an increase from the previously planned Rs 600 crore, as outlined in the draft red herring prospectus filed in March 2025 and approved by SEBI in December 2025.
ESDS Software Solution intends to utilize a significant portion of the net IPO proceeds, specifically Rs 576 crore, for the purchase and installation of cloud computing and other essential equipment and infrastructure for its data centers during fiscal years 2027 and 2028. The remaining funds will be allocated towards general corporate purposes.
Company Profile and Financial Performance
ESDS Software Solution positions itself as one of only two players in India offering a comprehensive suite of services, including GPU-as-a-Service (GPUaaS), cloud solutions, managed services, data center infrastructure, and various software solutions. The company currently operates data centers in key locations such as Airoli, Bengaluru, Nashik, Noida, and Mohali, with plans to establish new facilities in Kolkata and Sahibabad.
In a strategic move, ESDS Software entered into an AI cloud infrastructure agreement with an Australia-based neocloud AI compute service provider in March 2026. This agreement, with an initial term of five years (extendable by two), boasts an aggregate contract value of US$1,250 million, with revenue generation expected to commence in the third quarter of fiscal 2027.
Financial Highlights
- Profit: For the fiscal year ended March 2026, ESDS Software's profit more than doubled to Rs 120.8 crore, up from Rs 55.6 crore in the previous year.
- Revenue: Revenue for the same period rose by 30.7 per cent, reaching Rs 472.2 crore compared to Rs 361.3 crore a year prior.
Promoters and Key Investors
Promoters, including Piyush Prakashchandra Somani, collectively hold 46.06 per cent ownership in ESDS Software Solution. Public shareholders account for 52.65 per cent. Notable investors include Mukul Mahavir Agrawal, holding 6.99 per cent, and Ashish Kacholia, with a 2.39 per cent stake. Anchorage Capital Fund also holds 1.32 per cent.
DAM Capital Advisors and Systematix Corporate Services are serving as the book-running lead managers for the ESDS Software Solution IPO.