ESDS Software Solution Limited IPO — the disclosed details
Closed
ESDS Software Solution Limited is running a mainboard IPO on BSE and NSE, open for bidding from Friday, 28 August to Tuesday, 1 September 2026, in a price band of Rs 408 to Rs 429 per equity share, per the Red Herring Prospectus dated 24 August 2026.
This issue's bidding window has closed. What follows is the record of what was disclosed while the offer was open. It is not updated after the close, and it is not a view on the company or on how the shares have traded since.
This page restates what ESDS Software Solution Limited has filed for its initial public offering — the Red Herring Prospectus dated 24 August 2026 and the Price Band Advertisement — as filed, with no added opinion. The mainboard Issue opens for bidding on BSE and NSE on Friday, 28 August 2026 and closes Tuesday, 1 September 2026, in a price band of Rs 408 to Rs 429 per equity share of Rs 1 face value. If the vocabulary is new — DRHP, price band, buckets, allotment — read how an Indian IPO actually works first.
What the company does
ESDS Software Solution Limited was incorporated on 18 August 2005 as a private limited company. It converted to a public limited company in 2021 — the board approved the conversion on 29 June 2021, shareholders passed the special resolution on 30 June 2021, and the fresh certificate of incorporation is dated 8 July 2021. Its CIN is U72200MH2005PLC155433, and its registered office is in Nashik, Maharashtra.
Per its own RHP, the Company is an AI-enabled provider of cloud, managed services, Data Centre (IaaS) infrastructure and software (SaaS) solutions in India. Citing a company-commissioned Nexdigm report, “India Data Centre, Cloud Services and Managed Services Industry,” dated August 2026, the RHP states the Company is one of only two India-based players offering the full spectrum of GPUaaS, cloud, managed services, data centre and software solutions, and the largest of the two by FY2026 revenue from operations — Rs 4,722.10 million, against peer E2E Networks Limited’s Rs 2,455.80 million, per the Price Band Advertisement’s own comparison table.
The Company operates five Tier-3-certified Data Centres — at Airoli (Navi Mumbai), Nashik, Bengaluru, Mohali and Noida — totalling over 75,266 sq. ft., and served 2,501 customers in Fiscal 2026. On 31 March 2026 it entered a roughly USD 1,250 million, five-year AI-infrastructure services agreement, with a two-year extension option, with an Australia-based neocloud compute provider.
Promoters are Piyush Prakashchandra Somani (Chairman & Managing Director), Komal Piyush Somani, and the P.O. Somani Family Trust, who together held 45.86% of the Company’s pre-Issue paid-up equity capital, per the RHP.
What the money is for
The Issue is entirely a Fresh Issue of up to Rs 720.00 crore, with no Offer for Sale — there are no selling shareholders in this Issue, so every rupee raised goes to the Company.
The RHP states the net proceeds of the Fresh Issue are for:
| Object of the fresh issue | Amount, as filed |
|---|---|
| Purchase and installation of cloud computing and other equipment/infrastructure — computer servers, data storage devices, networking equipment, and other infrastructure — for the Company’s Data Centres at Airoli, Bengaluru, Mohali and Nashik | Rs 576.00 crore (Rs 5,760.00 million), fixed regardless of the final Issue Price; scheduled deployment of Rs 432.00 crore in Fiscal 2027 and Rs 144.00 crore in Fiscal 2028 |
| General corporate purposes | Balance of Net Proceeds; amount to be finalised on determination of the Issue Price and Basis of Allotment, capped at not more than 25% of Gross Proceeds |
What the RHP flags as risks
These are the Company’s own risk factors, from the risk-factor section of the RHP, restated without added adjectives:
- Rapid technological change could require continuous, uncertain investment. The RHP’s risk factor on technological obsolescence states that rapid change in cloud, IaaS and SaaS technology may require the Company to invest continuously, with no assurance the investment pays off, to remain competitive.
- A meaningful share of revenue depends on government and quasi-government clients and projects, exposing the business to policy or budgetary changes. Such clients were 27.37% of FY2026 revenue from operations, against 29.52% in FY2025 and 34.04% in FY2024.
- A key overseas subsidiary has a history of losses. ESDS Cloud FZ-LLC (UAE) recorded losses of Rs 60.19 million in FY2024 — 44.23% of the Company’s consolidated profit that year — and Rs 40.46 million in FY2025 (7.28% of consolidated profit), before a Rs 54.62 million profit in FY2026. Recurring subsidiary losses could affect the group’s financial condition.
- The platform stores and transmits customer and personally identifiable data. A security breach could result in litigation, penalties, fines and liability.
- Customer concentration, including geopolitical exposure through one client. The single largest client, a UAE-based company, was 15.93% of FY2026 revenue from operations; the top 10 clients together were 45.36% (the top 5, 34.89%). The RHP separately names geopolitical tensions and trade policy — including the Israel-Iran-related conflict’s effect on the UAE economy — as a risk tied to this relationship.
- A large share of assets is pledged as loan security. As at 31 March 2026, 96.72% of current assets were hypothecated and 18.89% of property, plant and equipment was mortgaged to lenders — up from 84.84% and down from 56.62% respectively in FY2024. Default could let lenders enforce that security.
The numbers as filed
| Item | As filed |
|---|---|
| Issue size | Up to Rs 720.00 crore (Rs 7,200.00 million) |
| Fresh issue | Up to Rs 720.00 crore — entirely fresh, no Offer for Sale |
| Equity shares on offer | Up to 1,76,47,058 shares at the Rs 408 floor; up to 1,67,83,216 shares at the Rs 429 cap |
| Face value | Rs 1 per equity share |
| Price band | Rs 408 (floor) to Rs 429 (cap) per equity share — 408 times face value at the floor, 429 times at the cap |
| Lot size | 34 equity shares, and in multiples of 34 thereafter |
| Minimum investment | Retail: Rs 13,872 (floor) to Rs 14,586 (cap) for 1 lot of 34 shares. Non-Institutional: “small NII” bids above Rs 2,00,000 up to Rs 10,00,000; “big NII” bids above Rs 10,00,000 |
Because the Fresh Issue is a fixed rupee amount rather than a fixed share count, the number of Equity Shares varies with the final Issue Price — more at the floor, fewer at the cap. Post-Issue paid-up capital works out to 11,80,74,811 shares at the floor and 11,72,10,969 shares at the cap, per the Price Band Advertisement’s own tables. The Draft Red Herring Prospectus, dated 30 March 2025, had proposed a Rs 600.00 crore Fresh Issue with a further option of up to Rs 120.00 crore as a Pre-IPO Placement; the RHP’s Rs 720.00 crore Fresh Issue supersedes that, with no Pre-IPO Placement undertaken.
Restated Consolidated financials, as filed in the RHP:
| Particulars (Rs million) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from operations | 2,865.18 | 3,613.35 | 4,722.10 |
| EBITDA | 1,018.81 | 1,548.85 | 2,342.34 |
| EBITDA margin | 35.56% | 42.86% | 49.60% |
| Profit after tax (PAT) | 136.09 | 556.12 | 1,208.23 |
| PAT margin | 4.75% | 15.39% | 25.59% |
| Return on Equity (RoE) | 6.23% | 17.27% | 25.12% |
| Return on Capital Employed (RoCE) | 14.53% | 24.73% | 32.78% |
| Debt-Equity ratio | 0.66 | 0.15 | 0.08 |
FY2026 Basic EPS was Rs 12.03 and Diluted EPS Rs 11.81. Restated NAV per share as at 31 March 2026 was Rs 52.66; post-Issue NAV per share, per the Price Band Advertisement’s Basis for the Issue Price section, is Rs 105.76 at the floor price and Rs 106.54 at the cap. RoE above is PAT divided by average total equity, per the RHP’s own definition. The RHP’s separate Basis for Issue Price chapter states a differently defined Return on Net Worth (RoNW) — PAT divided by year-end net worth — of 6.59% (FY2024), 13.71% (FY2025) and 22.85% (FY2026), a three-year weighted average of 17.09%; this is a distinct, RHP-defined metric from RoE above, not a duplicate or an error. The same section states the Company’s price-to-earnings ratio compared against the Nifty 50 index P/E of 20.48 times as on 20 August 2026; the Company’s own P/E multiple itself was not among the figures captured for this page.
Who can actually sell on listing day
On listing day, most of ESDS Software Solution’s share register is not allowed to trade.
The RHP’s Capital Structure chapter states four locked buckets:
| Who | Locked for, per this RHP |
|---|---|
| Minimum Promoters’ Contribution — 20% of the fully diluted post-Issue Equity Share capital held by the Promoters | 3 years from the date of Allotment, per Regulations 14 and 16(1) of the SEBI ICDR Regulations |
| Promoters’ shareholding in excess of that 20% minimum | 1 year from the date of Allotment (“Promoters’ One Year Lock-in”) — the RHP ties this longer-than-usual period explicitly to a majority of Gross Proceeds being used for capital expenditure |
| All other pre-Issue Equity Share capital (non-promoter) | 6 months from the date of Allotment, per Regulations 16(1)(b) and 17 of the SEBI ICDR Regulations, except shares allotted under ESOP 2024 on exercise and shares held by or transferred from the ESDS Employee Benefit Trust (ESOP 2021), which are carved out of the six-month lock, and shares held by a VCF/AIF (Category I or II)/FVCI, which instead lock 6 months from their own date of purchase |
| Anchor Investors | 50% of shares allotted locked 90 days from the date of Allotment; the remaining 50% locked 30 days from the date of Allotment |
ESDS’s Board approved the Anchor Investor allocation at Rs 429 per share to 19 anchor investors on 27 August 2026, per the company’s Anchor Investor allocation intimation letter to BSE and NSE.
| Step | Shares | % of post-issue capital |
|---|---|---|
| Total offer | 1,67,83,216 | 14.32% |
| Less: anchor allotment, locked 30/90 days | −50,34,964 | −4.30% |
| = Sellable on listing day | 1,17,48,252 | 10.02% |
| Locked or not offered — the rest of the register | 10,54,62,717 | 89.98% |
| Post-issue capital | 11,72,10,969 | 100.00% |
This assumes the Issue is fully subscribed at the Rs 429 cap price, the same price at which the Anchor allotment was made.
A lock-in is not a forecast of anything — it is a restriction on selling; it says who may trade, not what the price will do.
Figures are from the RHP’s Capital Structure chapter (Sections 18 to 20), the Issue Structure table, the Price Band Advertisement, and the Anchor Investor allocation intimation letter to BSE and NSE, as of 30 August 2026.
Dates and mechanics
| Event | Date |
|---|---|
| Anchor Investor Bidding Date | Thursday, 27 August 2026 |
| Bid/Issue opens | Friday, 28 August 2026 |
| Bid/Issue closes (UPI mandate confirmation by 5:00 p.m.) | Tuesday, 1 September 2026 |
| Finalisation of Basis of Allotment with the Designated Stock Exchange (NSE) | On or about Wednesday, 2 September 2026 |
| Credit of Equity Shares to demat accounts; initiation of refunds and ASBA unblock | On or about Thursday, 3 September 2026 |
| Commencement of trading on BSE and NSE | On or about Friday, 4 September 2026 (indicative) |
The Issue is made under Regulation 6(1) of the SEBI ICDR Regulations as a mainboard, 100% Book Built Issue, to be listed on both BSE and NSE (NSE is the Designated Stock Exchange). Allotment follows Rule 19(2)(b) of the Securities Contracts (Regulation) Rules and Regulation 31 of the SEBI ICDR Regulations.
| Bucket | Share of the Issue, as filed |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50%, proportionate |
| — of which, Anchor Investor Portion (discretionary) | Up to 60% of the QIB Portion |
| — Anchor Portion reserved for Mutual Funds | 33.33% (one-third) of the Anchor Portion |
| — Anchor Portion reserved for Insurance Companies and Pension Funds | 6.67% of the Anchor Portion |
| — Non-Anchor Net QIB Portion reserved for Mutual Funds | 5% of the Net QIB Portion |
| Non-Institutional Investors (NII) | Not less than 15% — one-third for bids of Rs 2-10 lakh, two-thirds for bids above Rs 10 lakh, both proportionate |
| Retail Individual Investors (RII) | Not less than 35% — minimum 1 lot (34 shares) per successful applicant, drawn by lot if oversubscribed |
Book Running Lead Managers: DAM Capital Advisors Limited and Systematix Corporate Services Limited. Registrar: MUFG Intime India Private Limited (formerly Link Intime India Private Limited). Per the Price Band Advertisement’s own disclosure, the two BRLMs have handled 23 public issues in the past three years, of which 8 closed below the issue price on listing day — DAM Capital Advisors 17 issues (4 below) and Systematix Corporate Services 6 issues (4 below).
Information as of 27 Aug 2026, taken from the offer documents and pages linked below. This is not an IPO review and no subscribe/avoid rating is given. Figures move through the issue lifecycle — check the filed documents before acting on any of them. Grey-market premium is an unofficial, unregulated price with no exchange record, and is not referenced here as information. Where the standing notice below refers to hypothetical figures, that covers the illustrative worked examples used in the options posts on this site — every number on this page is reproduced from the filed documents cited above.
This post is for educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security or derivative contract. The author is not a SEBI-registered Research Analyst or Investment Adviser. Futures and options trading carries a high risk of loss and is not suitable for every investor — you can lose your entire premium, and more when selling naked. All figures and examples in this post, including the rupee premiums and price levels, are hypothetical and used only to illustrate the framework; they are not predictions, return promises, performance claims, or a recommendation to trade any specific instrument. Lot sizes and premiums change over time — always check current exchange data before trading. Please consult a SEBI-registered investment adviser before making any investment decisions.
Sources
- Red Herring Prospectus, ESDS Software Solution Limited, dated 2026-08-24 (BRLM-hosted primary filing; 555 pages). Re-verified this session: full text re-searched section-by-section (Capital Structure, Objects, Risk Factors, Basis for Issue Price, Key Financial and Operational Metrics, Issue Structure). A genuine copy also exists on the Systematix BRLM site under a DIFFERENT filename (ESDS-Software-Solution-Limited-Red-Herring-Prospectus-Unsigned.pdf). →
- Systematix (BRLM) offer-documents listing confirming RHP / DRHP / Abridged Prospectus / Price Band Ad filenames for this issue →
- Price Band Advertisement, ESDS Software Solution Limited (BRLM-hosted statutory press-ad filing; 5-page scanned document, re-read as images this session since it has no extractable text layer) →
- Draft Red Herring Prospectus, ESDS Software Solution Limited, dated 2025-03-30 (originally BSE-hosted; re-downloaded fresh this session via WebFetch after the BSE fetch tool reported a corrupted/undecodable stream, then successfully text-extracted locally with pypdf, 524 pages) →
- Bajaj Broking -- ESDS Software Solution IPO summary (secondary aggregator, re-fetched this session, used only to corroborate already primary-confirmed dates/band/lot per SPEC) →
- Chittorgarh -- ESDS Software Solution IPO page (secondary aggregator named in task hint; returned HTTP 403 to direct fetch both in the original session and again this session, referenced via search-result snippet only) →
- Chittorgarh anchor allocation letter + Inc42 — anchor allocation, Rs 216cr raised (primary allocation letter + secondary corroboration) →
Common questions
How does IPO allotment work?
Applications are matched against the minimum lot size within each investor category (retail, HNI, QIB). In the retail category every applicant is first considered for one minimum lot: when the retail portion has enough shares to give every retail applicant one lot, everyone gets at least one and the surplus goes proportionately to those who bid more. Only when there aren't enough shares for one lot each is a computerised draw of lots used to pick who gets that single lot — and then each successful applicant gets exactly one lot, however many they bid for. It is never first-come-first-served, so applying early doesn't improve the odds.
What does the anchor investor lock-in mean?
Anchor investors (institutions allotted shares a day before the issue opens) are locked in and can't sell for a fixed period — and the clock runs from the date of Allotment, not from listing. Under the SEBI ICDR Regulations, 50% of the anchor shares are locked for 90 days from Allotment and the remaining 50% for 30 days from Allotment. It restricts anchors only; it says nothing about how retail-held shares will trade.
When do I get my money back if I'm not allotted?
Under ASBA, your bank only blocks the funds in your account — it's never debited until allotment. If you get no shares (or only a partial allotment), the block is released without any separate refund step: SEBI requires your bank (the SCSB) to complete the unblock by the close of banking hours on the working day after the basis of allotment is finalised — under the T+3 timeline, the day before the shares list. If it takes longer than that, SEBI's compensation policy provides ₹100 per day or 15% per annum of the application amount, whichever is higher — but it is complaint-triggered, so you have to raise it with your bank or the issue's lead manager to claim it.
What is ASBA / the UPI mandate?
ASBA (Application Supported by Blocked Amount) blocks the bid amount in your bank account instead of debiting it upfront. Retail investors bidding through UPI approve a mandate request in their UPI app, which blocks the funds — the money leaves your account only if shares are actually allotted.
The rest of the site
This page is a record of what was filed and published, and it stops there. The rest of the site is about the part that comes after you own something — how much of it to own, how to write the decision down, and how to grade it later.
Other issue pages from the same window
- Annu Projects Limited (Formerly known as Annu Projects Private Limited) · 25 Aug 2026 – 28 Aug 2026
- Lumino Industries Limited · 27 Aug 2026 – 31 Aug 2026
- Priority Jewels Limited · 28 Aug 2026 – 1 Sep 2026
- Purple Style Labs Limited · 31 Aug 2026 – 2 Sep 2026
Everything on this site is free.
Every page here — the IPO desk, the chapter library, the trade journal tool — is free to read, with no paywall, nothing gated behind payment, and no affiliate links. If any of it has been useful, this is just a way to back the time that goes into writing it, checking the numbers, and keeping it honest.
No perks, no tiers, nothing unlocked for paying more. Just support for the work, if you want to give it. Pay what feels right.