ESDS Software Solution jumps 5%, extends 6-session rally; shares up 287% from IPO price

ESDS Software Solution shares continued their remarkable post-listing rally on Friday, climbing 5.03% to Rs 1,661.75 and extending their winning run to six consecutive trading sessions.

The stock has now surged nearly 287% from its IPO price of Rs 429, delivering a stunning return to investors within just six trading days of listing.

The sharp rally continued after a blockbuster debut on the stock exchanges and growing investor optimism around India's expanding data-centre and digital infrastructure opportunity. ESDS Software Solution made its market debut at Rs 757 on the NSE, a premium of around 76.5% over its issue price. The stock gained further momentum on its first day, closing at Rs 908.40, representing a gain of nearly 112% over the IPO price.


Piyush Somani, Chairman and Managing Director of ESDS Software Solutions Limited, told ET, “We believe India can realistically bring 30-40 GW of new data centre power online over the next ten years, supported by a rapidly expanding generation base, renewable capacity additions and a policy environment that views digital infrastructure as strategic.” He added that, compared with today’s installed base of roughly 1,545 MW, this represents a significant structural shift.

IPO demand was exceptionally strong

The stock's explosive post-listing performance follows equally strong demand during its public issue. The ESDS Software Solution IPO was subscribed 136 times overall, highlighting aggressive investor interest across categories. The qualified institutional buyer (QIB) portion was subscribed more than 261 times, while the non-institutional investor and retail portions were subscribed around 193 times and 40 times, respectively.

The IPO comprised an entirely fresh issue, with the company setting a price band of Rs 408-429 per share. Before the public offering, ESDS raised Rs 216 crore from anchor investors, allotting 50.34 lakh shares at Rs 429 apiece.

A substantial portion of the funds raised through the IPO is earmarked for strengthening the company's digital infrastructure capabilities. Around Rs 576 crore is proposed to be invested in the purchase and installation of cloud-computing equipment and other data-centre infrastructure. The remaining proceeds will be used for general corporate purposes.

The investment comes at a time when demand for cloud computing, data storage, cybersecurity and digital infrastructure is accelerating, potentially creating a favourable operating environment for companies such as ESDS.

ESDS Software Solution operates across the digital infrastructure ecosystem, offering Infrastructure-as-a-Service (IaaS), Managed Services and Software-as-a-Service (SaaS) solutions. The company caters to customers in India and international markets, with key clients spanning banking and financial services, government and enterprise segments.

The company's financial performance also showed a significant improvement in FY26. Total income rose 28% year-on-year to Rs 480.65 crore in FY26, compared with Rs 376.64 crore in FY25. More notably, profitability surged. Profit after tax (PAT) more than doubled to Rs 120.82 crore, marking a 117% increase from Rs 55.61 crore in the previous financial year.

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