The Indian primary market is set for another major mainboard listing with ESDS Software Solution Ltd preparing for its IPO on August 28, 2026. This IPO will be open for subscription until September 1 and the IPO’s opening and closing date is set at 1 p.m. in India on August 28, 2026. The firm has set the IPO price band as ₹408 to ₹429 per share for the IPO.
ESDS Software Solution is a cloud, managed services, data-centre infrastructure and software solutions company. Its upcoming public issue has attracted attention because the company is seeking to raise fresh capital primarily for expansion of its data-centre and cloud infrastructure capabilities. The IPO consists of an entirely fresh issue of 1.68 crore equity shares, with no offer for sale component, so that the proceeds from the issue will go to the company.
ESDS Software Solution IPO: Key Details
The IPO has a price band of ₹408-₹429 per share with a minimum application lot of 34 shares. At the upper price band, a retail investor would need almost ₹14,586 to apply for one lot. The retail portion is 35% of the net offer, 50% will be reserved for qualified institutional buyers and 15% will be reserved for non-institutional investors.
The company's indicated value at the top end of the price band is around ₹5,028.3 crore. The anchor investor bidding period is scheduled for August 27, one day before the public issue opens. The tentative allotment date is September 2 and shares should be credited to the successful applicants on September 3. It will go on the exchanges on September 4, 2026.
Strong Financial Growth
One of the most attractive aspects of the IPO data to investors is the recent financial growth in ESDS Software Solution.
The company had revenue of about ₹292 crore in FY24 and about ₹377 crore in FY25. Revenue then increased to roughly ₹481 crore in FY26.
Profit after tax also increased sharply during the same period. PAT rose from around ₹13.6 crore in FY24 to ₹55.6 crore in FY25, before reaching ₹121 crore in FY26.
Based on the figures presented, the company's FY26 price-to-earnings multiple would be around 41.55 times, which is a key valuation metric investors should consider when considering the IPO.
Where will IPO Money go?
The new capital will aid ESDS Software Solution in its expansion plans, and in particular the development and enhancement of data-centre infrastructure and cloud computing capabilities. The company also plans to expand its data-centre bases and international expansion and to enter Europe and Southeast Asia, as well as other markets such as China and Japan, for this.
The company’s business is situated in various rapidly expanding technology categories - cloud infrastructure, artificial intelligence-enabled services, managed IT services and data centres. Increasing digitisation and demand for computing infrastructure could provide long-term opportunities for companies in this space.
But investors also have to consider the risks associated with capital-intensive operations of data centres. Power and cooling, networking, security and computing infrastructure are the three key investments required to create and maintain data centres.
Investor Interest
ESDS Software Solution’s IPO is also drawing attention because of the backing of big market investors such as Ashish Kacholia and Mukul Agrawal, market reports say.
The company’s promoter holding is estimated to be around 39.5% after the issue, compared with about 46.1% before the IPO, according to the figures provided.
For retail investors, ₹14,586 minimum investment at the upper price band makes the issue accessible compared to many larger IPOs. Investors should not just base their investment in an IPO on subscription expectations and the company’s well-known investors.
The company's growth in revenue and profitability is impressive but valuation, competition, customer concentration, capital expenditure requirements and the future performance of the cloud and data-centre businesses will remain important factors.
The Red Herring Prospectus filed with SEBI provides the formal disclosures and risk factors investors should take on before making an investment decision.
With the IPO due to open on August 28, ESDS Software Solution will be one of the companies in the tech and data centres space in India’s primary market to be most closely watched by investors in 2026. The combination of strong recent financial performance, an entirely new IPO and expansion plans could make the IPO a big deal to investors monitoring India’s rapidly growing digital infrastructure sector.
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