ESDS Software extends post-IPO rally, hits 20% upper circuit. Choice Equities sees more upside

ESDS Software Solution shares extended their post-listing rally on Monday, climbing 20% to hit the upper circuit at Rs 1,090 on the National Stock Exchange (NSE).

The stock opened at the upper-circuit level and remained locked there as of 9:18 am, against its previous close of Rs 908.40.

At Rs 1,090, ESDS Software was trading around 154% above its IPO price of Rs 429, more than doubling the investment of successful IPO allottees.


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The latest rally follows the company’s bumper market debut. ESDS Software listed at Rs 757 on the NSE, representing a premium of about 76.5% over its issue price. It subsequently gained 20% from the listing price to hit the upper circuit at Rs 908.40.

With Monday’s surge, the shares have risen about 44% from their listing price in two trading sessions. An IPO investor has a notional gain of Rs 661.05 per share at the current market price.

The strong performance follows heavy demand for the company’s Rs 720-crore IPO, which was subscribed around 136 times during the three-day bidding period from August 28 to September 1, 2026.

Qualified institutional buyers subscribed to their reserved portion more than 261 times. The non-institutional and retail portions were booked around 193 times and 40 times, respectively.

The IPO was entirely a fresh issue and carried a price band of Rs 408-429 per share. Before the offering opened, ESDS Software raised Rs 216 crore from anchor investors by allotting 50.34 lakh shares at Rs 429 apiece.

ESDS Software provides infrastructure-as-a-service, managed services and software-as-a-service offerings to domestic and overseas customers across the banking and financial services, government and enterprise segments.

ESDS Software Share Price: Choice Institutional sees further upside

Choice Institutional Equities has initiated coverage on ESDS Software Solutions with a buy rating and a target price of Rs 1,550. The target represented a 70.2% upside from the brokerage’s reference price of Rs 908. At Monday’s closing price of Rs 1,090.05, it indicates a potential upside of around 42%.

The brokerage highlighted ESDS’ integrated presence across cloud, colocation, GPU-as-a-Service, managed services and SaaS. It expects the company’s $1.25-billion AI infrastructure contract with Sharon AI to be a major growth driver, projecting revenue to rise from Rs 472 crore in FY26 to Rs 4,581 crore in FY28. Choice valued the company at 18 times its estimated FY28 EV-to-EBITDA.

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However, the brokerage flagged execution of the AI contract, customer concentration, capital-intensive expansion, and rising competition as key risks.

This article has been written by Somanjali Das, who is not a SEBI-registered Research Analyst or an investment advisor. Somanjali Das does not hold any financial interest in ESDS Software as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.