The ESDS Software mainboard IPO, a fresh issue of INR 720 crore, has concluded its allotment process today, September 2, 2026, after attracting bids totaling INR 71,553 crore. This significant interest reflects the Indian primary market’s strong demand for pure-play technology and AI infrastructure companies.
The Nashik-based cloud provider saw institutional capital pour in, with the Qualified Institutional Buyer (QIB) segment subscribing 274.97 times. ESDS Software operates five Tier-3 Data Centres across India. Its business model, which includes Integrated IaaS (43.88% of revenue) and SaaS (14.91%), particularly targets the growing GPU-as-a-Service (GPUaaS) sector, contributing to its margin expansion.
Company Performance and Valuation
ESDS Software has shown consistent financial growth. In FY 2024, revenue stood at INR 286.52 crore with a net profit of INR 13.61 crore. By FY 2025, revenue reached INR 361.34 crore and net profit rose to INR 55.61 crore. The upward trend continued into FY 2026, with revenue at INR 472.21 crore and net profit at INR 120.82 crore. The company’s EBITDA Margin improved from 35.56% in FY 2024 to 49.60% in FY 2026. Its debt-to-equity ratio significantly decreased from 0.66 in FY 2024 to 0.08 in FY 2026, indicating strong financial health.
At the upper price band of INR 429, the company’s post-issue Price-to-Earnings (PE) multiple is approximately 41.61x based on FY 2026 earnings. This pricing is considered justified when compared to competitors; E2E Networks, a listed cloud infrastructure company, is trading at a negative PE due to recent losses. This positions ESDS Software as a profitable and nearly debt-free asset in the Indian AI server space. Major brokerage firms, including Anand Rathi, Motilal Oswal, and Choice Broking, had recommended subscribing to the IPO for the long term.
Allotment Chances and How to Check
With an overall subscription of 142.88 times, non-institutional bidders faced high competition. Retail (RII) investors had an estimated chance of about 1 in 34, while Small HNI (sHNI) bidders faced odds of approximately 1 in 160. Big HNI (bHNI) bidders had an estimated chance of about 1 in 43.
To check allotment status, investors can use a tiered approach. The fastest method is to check ASBA-linked bank accounts or UPI apps for a direct debit of INR 14,586, which confirms allotment for one 34-share lot. A mandate revocation notification indicates the bid was rejected.
Alternatively, the master registry, MUFG Intime, will have the final data. Investors need their PAN or DP Client ID and should select “ESDS Software Solution” from the active issue dropdown. If MUFG servers experience timeouts, the BSE Application Status console can be used by selecting ‘Equity’, choosing ESDS, and entering the Application Number or PAN, followed by a captcha verification.
Post-Allotment Outlook and Timeline
For those who secured an allotment, the immediate outlook appears positive. The Grey Market Premium (GMP) currently stands at INR 250, suggesting an estimated listing price near INR 679. This would represent a premium of over 58%. Unlisted market operators show strong conviction, with “Subject to Sauda” rates hovering at INR 6,500 per lot.
The timeline for post-allotment activities is as follows: on September 3, 2026, refunds will be initiated, and UPI mandates for unsuccessful bids will be unblocked. By the evening of September 3, 2026, ESDS equity shares will be credited to successful bidders’ Demat accounts, with alerts expected from CDSL/NSDL. The company’s shares are scheduled for listing and commencement of trading on the NSE and BSE on September 4, 2026.
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