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The strong participation from domestic mutual funds in the anchor book for ESDS Software’s IPO indicates a positive reception from India’s institutional investment landscape for the cloud and data centre technology theme. However, the absence of significant foreign institutional investor (FPI) interest in this early phase, alongside the presence of several smaller AIFs, may present a point of consideration for broader market sentiment as the subscription period commences. The company’s recent financial performance shows robust growth in both revenue and net income, a key factor influencing investor appetite.
ESDS Software, a Nashik-based provider of AI-enabled cloud and data centre solutions, successfully raised INR 216 crore through its anchor book on August 27, 2026. The company priced its anchor shares at INR 429 apiece, the upper end of its price band, ahead of its public subscription opening on August 28.
The anchor allocation was heavily skewed towards domestic institutional investors. Six Indian mutual fund houses subscribed to 13 schemes, collectively acquiring 81.94% of the total anchor book. This substantial participation from local fund houses underscores domestic interest in the cloud and data centre sector.
Motilal Oswal Mutual Fund emerged as the largest recipient, securing 22.22% of the anchor book across two schemes. Bandhan Mutual Fund and Quant Mutual Fund also allocated 22.22% each to their respective schemes. ITI Mutual Fund followed with a 7.27% stake, while JM Financial Mutual Fund and Samco Small Cap Fund also participated.
The remaining allocations in the anchor book were distributed among two general insurance entities and two Category-III Alternative Investment Funds (AIFs), along with several other non-mutual fund investors. The limited presence of Foreign Portfolio Investors (FPIs) in the anchor book is a point institutional observers will likely monitor.
ESDS Software’s Initial Public Offering (IPO) is set to open for subscription on August 28, 2026, and will close on September 1. The total issue size is INR 720 crore, structured as a 100% fresh issue of approximately 1.67 crore shares. The price band for the IPO is set between INR 408 and INR 429 per share.
The company, which provides AI-enabled cloud, managed services, data centre infrastructure, and software solutions, reported revenue growth from INR 286.52 crore in FY2024 to INR 472.21 crore in FY2026. Net income saw a significant expansion, reaching INR 120.82 crore in FY2026 from INR 13.61 crore in FY2024. At the upper end of the price band, ESDS Software is valued at approximately 39.57x to 41.61x its FY2026 earnings. Its closest listed comparable, E2E Networks, reported a negative EPS for the same period, making direct valuation comparisons challenging.
The unofficial grey market premium (GMP) for ESDS Software IPO stood at INR 365 as of August 27, 2026, suggesting a potential listing price of INR 794, representing an approximate 85.08% premium to the upper price band. However, grey market premiums are unofficial and should be viewed as indicative only.
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