ESDS IPO Draws Strong Demand as Grey Market Premium Cools
ESDS Software Solution’s initial public offering entered its final day of bidding on Tuesday, September 1, with the issue attracting heavy investor demand while its grey market premium showed signs of cooling.
Grey market data cited by market publications varied during the morning. Moneycontrol reported a premium of ₹250, implying a potential listing gain of about 58.3% over the IPO’s upper price band of ₹429. NDTV Profit, citing data at around 10:30 a.m., put the premium at ₹270, implying a potential listing price of ₹699 and a gain of about 62.9%.
The difference reflects the unofficial nature of GMP data, which can vary between market trackers and change during the day. Earlier in the morning, IPOWatch had reported a GMP of ₹316 at 9:47 a.m., equivalent to a 73.66% implied premium.
ESDS IPO subscription remains strong
Investor demand has been substantial.
NDTV Profit reported that the issue was subscribed 33.61 times by 11:30 a.m. on September 1. Non-institutional investors had bid for 98.1 times their reserved portion, while the retail category was subscribed 24.69 times. The QIB portion stood at 0.86 times at that point.
Earlier, Moneycontrol reported that the issue had been subscribed 28.31 times by 10:30 a.m., with the NII portion booked 81.74 times and the retail portion 21.17 times.
The subscription figures are based on different timestamps, so they should not be treated as conflicting totals.
The ₹720-crore IPO opened for subscription on August 28 and closes on September 1. The price band has been fixed at ₹408 to ₹429 per share, with investors required to bid in lots of 34 shares. At the upper end of the band, a retail investor needs ₹14,586 for one lot.
The issue consists entirely of a fresh issue of approximately 1.68 crore shares, with no offer-for-sale component.
What does the ESDS IPO GMP indicate?
At a GMP of ₹250, the implied listing price would be around ₹679, while a ₹270 premium would point to approximately ₹699.
These calculations are based on adding the reported grey market premium to the IPO’s upper price band of ₹429. They are not forecasts issued by the company or the stock exchanges.
GMP is an unofficial market indicator and is not a guarantee of the actual listing price. It can move sharply before listing and should not be treated as a substitute for fundamental analysis. Moneycontrol and NDTV Profit both cautioned investors about the speculative nature of the indicator.
The cooling in the reported premium from levels above ₹300 earlier in the day does, however, show why GMP figures should be viewed as a moving indicator rather than a fixed expectation. IPOWatch recorded ₹316 on September 1 at 9:47 a.m., down from ₹328 on August 31 and ₹360 on August 29.
Where will ESDS use the IPO proceeds?
ESDS Software Solution plans to use the bulk of the proceeds to expand its cloud and data-centre infrastructure.
Around ₹576 crore is earmarked for purchasing and installing cloud computing equipment and other data-centre infrastructure. The remaining proceeds are intended for general corporate purposes.
The company raised ₹216 crore from anchor investors before the public issue, with the anchor allocation made at ₹429 per share.
ESDS financial performance
ESDS reported revenue from operations of ₹472.21 crore in FY2026, while net profit stood at ₹120.82 crore, according to Moneycontrol’s report based on the company’s financial disclosures.
The company operates in cloud computing, managed services, data-centre infrastructure and AI-related technology. ESDS says its offerings include infrastructure-as-a-service, software-as-a-service, managed services and GPU-as-a-Service.
Its investor-relations website provides the company’s statutory filings and IPO documents, including the Red Herring Prospectus.
The company’s March 2025 draft prospectus identifies ESDS as an IT-enabled services provider covering infrastructure-as-a-service, software-as-a-service and managed services.
ESDS IPO allotment and listing date
The bidding period ends on September 1. The basis of allotment is expected to be finalised on September 2, with refunds and credit of shares to successful applicants expected on September 3.
The shares are scheduled to list on both the NSE and BSE on September 4, subject to the timetable remaining unchanged.
For investors following the IPO purely for potential listing gains, the GMP will remain an important indicator in the final days. But the wide variation in GMP figures reported by different trackers on September 1 is itself a reminder that the grey market does not provide an official price signal.
The final listing price will ultimately be determined by actual market trading when ESDS shares begin trading on the exchanges.
