ESDS Software Solution Opens Rs 720 Crore IPO Targeting Data Centre Expansion
Indian cloud and data centre provider ESDS Software Solution has opened its Rs 720 crore initial public offering, seeking capital to expand infrastructure amid surging domestic demand for AI and cloud services.
ESDS Software Solution Limited opened its Rs 720 crore initial public offering on August 28, 2026. The subscription window for the entirely fresh issue of 1.68 crore shares will remain open until September 1, with listing expected on the NSE and BSE on September 4.
The company set its price band at Rs 408 to Rs 429 per share. At the upper end, this implies a price-to-earnings multiple of 36.33 times based on FY26 earnings, valuing the business at a post-issue market capitalisation of Rs 50,284 million. This premium sits above the Nifty 50 average of 20.48 times but remains significantly below the broader industry peer average of 819.78 times.
Prior to the public issue, ESDS secured Rs 216 crore from anchor investors at the top of the price band. The bulk of the fresh capital, approximately Rs 576 crore, is earmarked for purchasing and installing cloud computing equipment to strengthen its data centre infrastructure. The remainder will be allocated to general corporate purposes.
This capital raise follows a period of sharp financial expansion for the firm. Total income for FY26 rose 28 per cent year-on-year to Rs 480.65 crore, up from Rs 376.64 crore in the previous year. Profit after tax more than doubled to Rs 120.82 crore, reflecting improved operational leverage and strong demand for its services.
ESDS currently operates five Tier 3 data centres across India, spanning over 75,266 square feet. The company provides infrastructure, managed services, and software solutions to 2,501 clients, including government and BFSI entities. Its portfolio increasingly focuses on GPU-as-a-Service and proprietary AI-enabled cloud platforms like SWARAJ Cloud to capture growing enterprise workloads.
Analysts at Anand Rathi have assigned a long-term subscribe rating to the offering. They note the company is well positioned to benefit from India’s expanding cloud and AI infrastructure market. However, they caution that intense competition from global cloud giants, customer concentration, and heavy ongoing capital requirements warrant careful valuation monitoring.
