ESDS Software Solution Ltd IPO

IT - Software

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Price Band

₹408 – ₹429

Lot Size

34

Minimum Bid Quantity

34

Minimum Investment

₹14586

Issue Size

₹720Cr

Opens

2026-08-28

Closes

2026-09-01

Listing

04-09-2026

Subscription Status

Qualified Institutional Buyers

261.51 x

Non-Institutional Investor

192.71 x

Retail Individual Investor

38.81 x

Total

135.42 x

IPO Details

Issue Type

EQUITY

Face Value

₹1

Tick Size

1

ISIN

INE0DRI01029

Pre-Apply Available

No

Daily Bidding Time

10:00:00 - 17:00:00

About the Company

ESDS Software Solution is an artificial intelligence (AI)-enabled cloud, managed services, data centre infrastructure, and software solutions provider in India. Its offerings include infrastructure-as-a-service (IaaS), managed services, and software-as-a-service (SaaS). The IaaS portfolio includes colocation and data centre services, public, private, virtual private, hybrid, and community cloud services, cloud computing, and GPU-as-a-Service (GPUaaS). Its managed services include cloud and data centre management, cybersecurity and compliance, IT infrastructure and network management, backup and disaster recovery, database management, DevOps, and automation services. The company operates five data centres in Nashik, Navi Mumbai, Bengaluru, Mohali, and Noida, covering an aggregate area of over 75,266 square feet. Its SaaS portfolio includes data centre management and monitoring software, vulnerability scanners, web access firewalls, and virtual private network (VPN) solutions. The company also provides services to banking, financial services, and insurance (BFSI) companies, government entities, and enterprises. Use of proceeds: This is a fresh issue of shares. Therefore, the net proceeds from the fresh issue will go to the company. They will be utilised for the following purposes: Purchase and installation of cloud computing and other equipment and infrastructure for relevant data centres – Rs 576 crore General corporate purposes

Pros

  • • The company is stated to be one of the only two players in India offering the entire spectrum of GPU-as-a-Service (GPUaaS), cloud, managed services, data centre infrastructure, and software solutions. It claims the share of customers availing all three service lines increased from 62.32% in FY24 to 79.58% in FY25 and 89.04% in FY26, while its revenue retention rate (RRR) stood at 94.92% in FY26. Revenue retention rate is defined as revenue from existing customers in the current year divided by the revenue from operations of the previous year. Existing customers are entities that have engaged in previous years with the company’s products or services and continue to maintain an active business relationship with ESDS in the current year.
  • • The company claims to have a comprehensive Security-as-a-Service (SECaaS) framework covering security information and event management (SIEM), endpoint security, vulnerability management and incident response. As of June 30, 2026, it had more than 123 customers and secured over 5,000 devices, while it identified and assessed more than 20,000 vulnerabilities during the period from January 1, 2026 to June 30, 2026.
  • • The company claims to have long-standing relationships with over 100 banks and other established businesses, including Software Technology Parks of India (STPI). Its total customers increased from 1,465 in FY24 to 1,714 in FY25 and 2,501 in FY26, while the proportion of revenue from customers with relationships of more than three years increased from 49.28% in FY24 to 61.44% in FY25 and 65.60% in FY26.

Cons

  • • The company operates in an industry characterised by rapid technological innovation, evolving industry standards, and changing customer demands. Research and development (R&D) expenses stood at Rs 6.25 crore (1.32% of revenue from operations), Rs 8.24 crore (2.28%) and Rs 12.66 crore (4.42%) in FY26, FY25, and FY24, respectively. Both in terms of absolute numbers and percentage, the figures have been falling over the years, which indicates the company is stepping back in its R&D efforts. Failure to innovate, adapt to technological developments or evolving industry standards could adversely affect the company's business, financial condition and results of operations.
  • • Revenue directly or indirectly from government entities and government projects stood at Rs 129.26 crore (27.37%), Rs 106.68 crore (29.52%), and Rs 97.53 crore (34.04%) of revenue from operations in FY26, FY25, and FY24, respectively. The numbers are significant, and so any changes in government policies or budgetary allocations, or failure to satisfy eligibility and selection criteria for government contracts, could adversely affect the company's over business and financial condition.
  • • The company's cloud platform and products involve the storage and transmission of customer data, including personally identifiable information, making it exposed to risks from unauthorised access and security breaches. Any such breach could result in data loss, litigation, fines, penalties, regulatory action, and other liabilities and could adversely affect the company's reputation and financial condition.

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