| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹408 to ₹429 | 34 | 28th Aug, 2026 – 1st Sep, 2026 | ₹720 Cr |
ESDS Software Solution Limited
ESDS Software Solution Limited is a cloud infrastructure, managed services and software solutions provider, offering an integrated portfolio comprising Infrastructure-as-a-Service (IaaS), managed services and Software-as-a-Service (SaaS). Its IaaS offerings include cloud services, cloud computing, colocation and data centre services, while its managed services cover cloud operations and management, data centre build and audit consulting, development and operations and security solutions. The company also offers SaaS solutions through its marketplace and in-house applications, enabling it to address a broad range of enterprise IT infrastructure and digital transformation requirements. The company has also expanded into GPU-as-a-Service (GPUaaS), positioning itself to benefit from increasing demand for AI, machine learning, data analytics and high-performance computing infrastructure. ESDS was an early adopter of cloud technology in India, establishing its first data centre in Nashik in 2010 and launching its cloud services in 2011; its eNlight product family was rebranded as the SWARAJ product family in June 2026. In FY26, IaaS, managed services and SaaS contributed 43.9%, 41.2% and 14.9% of revenue from operations, respectively. Revenue from operations increased 30.7% YoY to Rs. 472.2 crore, driven primarily by a sharp increase in managed services revenue, while the company had 2,501 customers across BFSI, government and enterprise segments. Enterprise customers accounted for 55.1% of revenue, followed by government at 27.4% and BFSI at 17.5%. ESDS operates an integrated data centre and cloud infrastructure platform and is among the limited Indian players offering the broader combination of GPUaaS, cloud, managed services, data centre infrastructure and software solutions. The company’s end-to-end capabilities across cloud and colocation provide access to both enterprises and SMEs, while its growing customer base and diversified service portfolio support revenue visibility.
Objective of ESDS Software Solution Limited
The IPO comprises a Fresh Issue aggregating up to Rs.720 crores. The Net Proceeds from the Fresh Issue are proposed to be utilized for the following purposes:
- Purchase and installation of cloud computing and other equipment and infrastructure for its Relevant Data Centres;
- General corporate purposes.
Rationale To ESDS Software Solution Limited
Investment Rationale
Strong customer relationships and AI-driven technology supporting recurring growth and market opportunities
ESDS has established long-standing relationships with over 100 banks and well-established businesses, supported by its diversified portfolio of cloud infrastructure, managed services, data centre and software solutions. Its end-to-end offering enables customers to address multiple digital infrastructure requirements through a single service provider, helping ESDS cater to evolving digital transformation needs and strengthen customer relationships. The company has steadily deepened customer engagement, with the share of revenue from customers with relationships of more than three years increasing from 49.28% in FY24 to 65.60% in FY26, while those with relationships exceeding five years rose from 23.25% to 47.75% during the same period. This increasing customer tenure reflects the stickiness of its offerings and provides scope to expand the range of services provided to existing customers. ESDS has also developed proprietary AI and cloud technologies that strengthen its differentiation. Its patented SWARAJ vertical auto-scaling technology enables dynamic resource allocation based on customer requirements, supporting efficient utilisation of cloud infrastructure and the ability to manage changing workloads. Further, the company launched a fully managed GPU-as-a-Service (GPUaaS) platform in November 2025, offering GPU infrastructure, deployment, operations and managed services for AI/ML, Generative AI and LLM workloads. This allows enterprises to access scalable, high-performance computing infrastructure without managing the underlying complexity themselves. The combination of established customer relationships, end-to-end capabilities and differentiated AI-led technology positions ESDS to deepen customer engagement and capture opportunities arising from increasing adoption of cloud and AI infrastructure.
Integrated SECaaS platform enabling proactive and scalable cybersecurity solutions
Enterprises, BFSI institutions, and government organisations to proactively monitor, identify, and mitigate cyber threats. Its cybersecurity portfolio covers Security Information and Event Management (SIEM), endpoint security, vulnerability management, penetration testing, API security testing and incident response, allowing customers to address multiple cybersecurity requirements through a single service provider. As of June 30, 2026, the company had onboarded more than 123 customers and secured over 7,175 devices. During January–June 2026, its SIEM operations investigated more than 0.63 million alerts, analysed over 3,163 critical incidents and identified more than 20,000 vulnerabilities, while issuing security advisories to help customers mitigate potential threats. The company’s Security Operations Centre (SOC) provides continuous monitoring and threat mitigation, supporting operational resilience and regulatory compliance. Its ability to offer cybersecurity as standalone services also positions it to benefit from the increasing adoption of outsourced security solutions, particularly among BFSI institutions and large enterprises. The combination of integrated cybersecurity capabilities, continuous threat monitoring, vulnerability assessment, and incident response enables the company to provide scalable, cost-efficient security solutions. This end-to-end service offering can strengthen customer retention and create opportunities for deeper engagement as organisations face increasingly complex cyber threats and evolving regulatory requirements.
Valuation of ESDS Software Solution Limited
ESDS Software Solution Limited is an established cloud infrastructure and managed services provider, offering data centre, cloud computing and related digital infrastructure solutions. The company operates in a growing industry supported by increasing cloud adoption, digital transformation, AI/ML applications and rising demand for data centre infrastructure in India. Its expanding data centre footprint, improving profitability and presence across cloud and managed services provide a strong foundation for long-term growth. The Indian cloud and data centre industry offers structural growth opportunities, supported by increasing enterprise digitisation, adoption of cloud-based solutions and demand for AI-ready computing infrastructure, which could benefit organised domestic players such as ESDS. On the financial front, the company has demonstrated strong operating performance, with Revenue/EBITDA/PAT increasing to Rs.472 Cr/Rs.234 Cr/Rs.121 Cr in FY26. EBITDA margin improved to 49.6% in FY26, while PAT margin stood at 25.6%. At the upper price band of Rs.429, the issue is valued at approximately 36.4x FY26 diluted EPS of Rs.11.8. While the company’s strong earnings growth, high EBITDA margins and favourable industry outlook provide support to the premium valuation, the multiple remains relatively demanding. Considering the company’s strong growth prospects, we recommend a “SUBSCRIBE” rating with a long-term investment horizon.
What is the ESDS Software Solution Limited IPO?
The initial public offer (IPO) of ESDS Software Solution Limited an early investment opportunity in. A stock market investor can buy ESDS Software Solution Limited IPO shares by applying in IPO before ESDS Software Solution Limited shares get listed at the stock exchanges. An investor could invest in ESDS Software Solution Limited for short term listing gain or a long term.
How to apply for the ESDS Software Solution Limited IPO through StoxBox?
To apply for the ESDS Software Solution Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the ESDS Software Solution Limited IPO open?
ESDS Software Solution Limited IPO is opening on 28th Aug 2026. Apply Now
What is the lot size of the ESDS Software Solution Limited IPO?
The Lot Size of ESDS Software Solution Limited 34 equity shares. Login to your account now.
When is the ESDS Software Solution Limited IPO allotment date?
The allotment Date for ESDS Software Solution Limited IPO 2nd Sep 2026. Login to your account now.
When is the ESDS Software Solution Limited IPO listing date?
The listing Date for ESDS Software Solution Limited is 4th Sep 2026. Login to your account now
What is the minimum investment required for the ESDS Software Solution Limited IPO?
In the Retail segment the minimum investment required is Rs 14,586 Login to your account now
What is the maximum investment allowed for ESDS Software Solution Limited IPO?
In the Retail segment the maximum investment requirement Rs 1,89,618 Login to your account now
What are the risks associated with investing in the ESDS Software Solution Limited IPO?
- The company operates in a highly competitive cloud, data centre and managed services market. Competition from global hyperscalers and domestic players could result in pricing pressure, higher customer acquisition costs and increased investment requirements, which may adversely affect margins and growth.
- ØESDS is exposed to operational disruptions across its data centre infrastructure. Equipment failures, power, internet or telecommunication interruptions, infrastructure failures and force majeure events could disrupt service delivery and result in financial losses, customer attrition and adverse impact on cash flows.
- The company’s operations are dependent on maintaining various regulatory approvals and licences. Any delay in obtaining, renewing or maintaining the requisite approvals could adversely affect its ability to operate and may impact business performance.
When will the ESDS Software Solution Limited IPO shares be credited to my Demat account?
The ESDS Software Solution Limited will be credited to the account on allotment date which is 1st Sep 2026. Login to your account now
Where can I find the ESDS Software Solution Limited IPO prospectus?
The prospectus of ESDS Software Solution Limited IPO prospectus can be found on the website of SEBI, NSE and BSE
