ESDS Software Secures ₹216 Crore from Anchor Investors Ahead of IPO

New Delhi, India Aug 27, 2026 ALN: Cloud and data centre company ESDS Software Solution has successfully raised ₹216 crore from anchor investors as it prepares for the opening of its ₹720 crore initial public offering (IPO). This significant financial backing is seen as a positive indicator of investor confidence in the company's future prospects and growth potential.

In its filings with the Bombay Stock Exchange (BSE), the Nashik-based company disclosed that it allotted 50.3 lakh equity shares to 19 entities at ₹429 apiece, which represents the upper end of its IPO price band. This strategic pricing reflects the company's valuation and the anticipated demand for its shares in the market.

The anchor round garnered substantial interest from domestic mutual funds, which acquired 41.26 lakh shares worth nearly ₹177 crore, accounting for approximately 81.94% of the total anchor allocation. Notably, six domestic mutual funds participated through 13 schemes, highlighting the widespread interest from institutional investors in ESDS's growth story. Prominent participants included Motilal Oswal, Bandhan Mutual Fund, Quant Mutual Fund, and ITI Mutual Fund. Other notable anchor investors comprised Bajaj General Insurance, Sanshi Fund-I, Meru Investment Fund, Cognizant Capital Dynamic Opportunities Fund, and CP Capital.

ESDS Software Solution’s IPO is set to open for subscription tomorrow and will close on September 1 (Tuesday). Following the subscription period, the company’s shares are expected to tentatively list on the BSE and NSE on September 4 (Friday). This timeline is crucial for investors, as it sets the stage for potential trading and liquidity in the newly issued shares.

The public issue comprises entirely a fresh issue of shares worth up to ₹720 crore, with no offer for sale (OFS) component included. At the upper end of its ₹408-₹429 price band, ESDS is seeking a valuation of approximately ₹5,028 crore (around $526 million). This valuation is indicative of the company's growth trajectory and its positioning within the competitive cloud and data centre market in India.

ESDS has outlined plans to utilize ₹576 crore from the net proceeds of the IPO to purchase and install cloud computing equipment and enhance other infrastructure at its existing data centres located in Airoli, Bengaluru, Mohali, and Nashik. The investment in infrastructure is critical as the demand for cloud services continues to rise, driven by digital transformation initiatives across various sectors. Additionally, a portion of the fresh proceeds will be allocated for general corporate purposes, which may include research and development, marketing, and operational enhancements.

Interestingly, this is not ESDS’s first attempt at an IPO. The company initially sought to list on the public markets in September 2021 but chose not to proceed with the issue due to the impact of the pandemic. Following this setback, ESDS re-filed its papers in March 2025, demonstrating resilience and a commitment to navigating the challenges posed by external market conditions.

Founded in 2005 by Piyush Somani, ESDS has established itself as a key player in the cloud infrastructure and data centre services sector. The company offers a diverse range of services, including managed services and software as a service (SaaS) products. ESDS operates five data centres strategically located in Navi Mumbai, Nashik, Bengaluru, Mohali, and Noida, which enables it to cater to a broad customer base across the country.

The company's business model is structured into three primary service lines. Under the infrastructure-as-a-service (IaaS) segment, ESDS provides cloud and colocation services, which are essential for businesses looking to scale their operations without the burden of managing physical infrastructure. The managed services vertical encompasses IT infrastructure, cloud, security, and operational support, offered on a contract or subscription basis. This model allows clients to focus on their core business while outsourcing their IT needs to experts.

Financially, the company reported a consolidated net profit of ₹120.8 crore in FY26, more than doubling from ₹55.6 crore in the previous fiscal year. This impressive growth reflects the increasing demand for cloud and data centre services, as businesses continue to migrate to digital platforms. Additionally, ESDS's operational revenue rose by 30.7% to ₹472.2 crore in FY26, up from ₹361.3 crore in FY25, further underscoring its robust growth trajectory.

On the operational front, ESDS claims to have served 2,501 customers in FY26, with an average revenue per customer of around ₹19 lakh. This customer base illustrates the company's ability to attract and retain clients in a competitive market, highlighting the effectiveness of its service offerings and customer engagement strategies. As ESDS moves forward with its IPO and expansion plans, it will be crucial for the company to maintain its focus on customer satisfaction and service excellence to sustain its growth momentum in the rapidly evolving cloud computing landscape.