ESDS Software Solution has raised Rs 216 crore from anchor investors ahead of its Rs 720 crore initial public offering. The Nashik based cloud and data centre company allotted 50.3 lakh equity shares to 19 entities at Rs 429 per share, the upper end of the price band. The public issue opens for subscription on August 28 and closes on September 1, with listing expected on September 4.
Anchor Allocation Details
Domestic mutual funds received the largest share of the anchor allocation, picking up 41.26 lakh shares worth nearly Rs 177 crore. This represented 81.94 percent of the total anchor portion and involved six mutual funds across 13 schemes. Other participants included Bajaj General Insurance, Sanshi Fund I, Meru Investment Fund, Cognizant Capital Dynamic Opportunities Fund and CP Capital.
IPO Structure and Valuation
The initial public offering consists entirely of a fresh issue of shares worth up to Rs 720 crore, with no offer for sale component. The price band has been fixed at Rs 408 to Rs 429 per share, and at the upper end the company is valued at approximately Rs 5,028 crore. The issue is expected to finalise allotment on September 2 and credit shares to demat accounts on September 3.
Use of IPO Proceeds
ESDS plans to deploy Rs 576 crore from the net proceeds toward purchasing and installing cloud computing equipment and other infrastructure. These investments will enhance capacity at its existing data centres in Airoli, Bengaluru, Mohali and Nashik, which are central to its service delivery. The remaining amount raised through the public issue will be allocated to general corporate purposes.
Company Background
Founded in 2005 by Piyush Somani, ESDS offers cloud infrastructure, managed services, data centre services and software as a service products. The company operates five data centres across Navi Mumbai, Nashik, Bengaluru, Mohali and Noida. It serves customers in sectors such as banking, financial services, insurance, government and enterprise segments across India.
Technology and Data Centre Capabilities
The company owns proprietary technology including SWARAJ Cloud, a patented cloud autoscaling platform that has been developed into an AI enabled cloud platform. This platform focuses on data sovereignty, scalability, security, compliance and AI capabilities. ESDS also operates Tier-3 data centres covering more than 75,000 square feet, supporting colocation, public cloud, private cloud, hybrid cloud and GPU as a service solutions.
Service Portfolio and Revenue Mix
Its business is structured into infrastructure as a service, managed services and software as a service. Infrastructure as a service contributed 44 percent of revenue, while managed services accounted for 41 percent during the reviewed period. The remaining revenue came from software as a service offerings, reflecting a diversified cloud and managed technology portfolio.
Financial Performance
On the financial front, consolidated net profit more than doubled to Rs 120.8 crore in fiscal 2026 from Rs 55.6 crore in the previous year. Operational revenue rose 30.7 percent to Rs 472.2 crore from Rs 361.3 crore during the same period. The company also reported serving 2,501 customers in fiscal 2026, with an average revenue per customer of around Rs 19 lakh.
With strong anchor demand and a defined expansion plan, ESDS Software Solution is entering the public market at a time of growing demand for cloud and data centre capacity in India. The absence of an offer for sale means the fresh issue proceeds will directly support the company's infrastructure investment. A successful listing on September 4 could strengthen its capital base and support its next phase of growth.