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IPO Details

ESDS Software Solution Limited IPO Details

This article is based entirely on publicly available information disclosed in the Red Herring Prospectus (RHP) of ESDS Software Solution Limited, dated August 24, 2026, and is intended for general market and financial education purposes only.

ESDS Software Solution Limited IPO Details

1. IPO Snapshot

ParticularDetails
Company NameESDS Software Solution Limited
IPO TypeBook Built Issue (Fresh Issue only, no OFS)
Fresh Issue17,647,058 Equity Shares at Floor Price of ₹408 / 16,783,216 Equity Shares at Cap Price of ₹429, aggregating up to ₹7,200.00 million
Total Issue SizeUp to ₹7,200.00 million (i.e., ₹720.00 crore)
Face Value₹1 per Equity Share
Price Band₹408 to ₹429 per Equity Share
Lot Size34 Equity Shares (and in multiples of 34 thereafter)
Anchor Investor Bidding DateThursday, August 27, 2026
Bid/Issue Opening DateFriday, August 28, 2026
Listing Exchange(s)BSE Limited and National Stock Exchange of India Limited (NSE as Designated Stock Exchange)
RegistrarMUFG Intime India Private Limited (formerly Link Intime India Private Limited)
Book Running Lead ManagersDAM Capital Advisors Limited; Systematix Corporate Services Limited

2. IPO Details

ParticularsAt Floor ₹408At Cap ₹429
Fresh Issue17,647,058 Equity Shares16,783,216 Equity Shares
Total Issue Size₹7,200.00 million₹7,200.00 million
Pre-Issue Equity Shares100,427,753100,427,753
Post-Issue Equity Shares118,074,811117,210,969
Pre-Issue Market Capitalisation₹40,974.22 million₹43,083.51 million
Post-Issue Market Capitalisation₹48,174.52 million₹50,283.51 million

3. Issue Reservation

Category% of Issue
Anchor Investor PortionUp to 60% of QIB Portion
QIB Portion (including Anchor)Not more than 50% of the Issue
Non-Institutional Investors (NII)Not less than 15% of the Issue
Retail Individual Investors (RII)Not less than 35% of the Issue

4. IPO Lot Size

ApplicationLotsSharesAmount at ₹408Amount at ₹429
Retail (Min)134₹13,872₹14,586
Retail (Max)13442₹1,80,336₹1,89,618
S-HNI (Min)14476₹1,94,208₹2,04,204
S-HNI (Max)682,312₹9,43,296₹9,91,848
B-HNI (Min)692,346₹9,57,168₹10,06,434

5. About the Company

ESDS Software Solution Limited was incorporated in 2005 as ESDS Software Solution Private Limited in Maharashtra. In 2021, the company was converted into a public limited company and renamed ESDS Software Solution Limited.

Its registered office is in Nashik, Maharashtra, while its corporate office is in Thane, Maharashtra.

Business Model and Overview ESDS is an AI-enabled cloud, managed services, data centre and software solutions company. It provides businesses and government organisations with the infrastructure and technology needed to store, manage, secure and process their data.

The company offers three main categories of services:

Infrastructure as a Service (IaaS) : Includes data centre and colocation services, cloud computing and GPU-as-a-Service (GPUaaS)

Managed Services : Includes cloud and data centre management, cybersecurity, IT infrastructure management, backup and disaster recovery, database management, DevOps and automation.

Software as a Service (SaaS) : Includes data centre monitoring tools, vulnerability scanners, web application firewalls, VPN solutions and its SWARAJ GPU Monitoring Tool.

Customers and Geography

ESDS serves customers across three major segments:

  • Enterprises: 55.09% of FY2026 revenue
  • Government: 27.37%
  • BFSI: 17.53%

The company also has subsidiaries in Dubai, UAE and Delaware, USA, giving it an international presence.

Key Strengths

  • End-to-end technology offering: ESDS combines cloud, GPUaaS, managed services, data centres and software solutions under one platform.

  • Strong customer relationships: The company has long-term relationships with banks, enterprises and government organisations.

  • Government presence: ESDS works with government organisations and PSUs and participates in policy initiatives.

  • AI and proprietary technology: The company has developed AI-driven solutions and patented technologies such as its SWARAJ cloud autoscaling technology.

  • Security capabilities: Its services include cybersecurity and compliance solutions through its Security-as-a-Service framework.

  • Experienced management: The company has an experienced leadership and senior management team.

Revenue by Service Line - FY2026

Service LineRevenue (₹ million)% of Revenue
IaaS2,071.9743.88%
└ Cloud Services & Cloud Computing1,678.9035.55%
└ Colocation & Data Centre Services393.078.33%
Managed Services1,945.9141.21%
SaaS704.2214.91%
Total Revenue from Operations4,722.10100.00%

The business is fairly balanced between IaaS and Managed Services, which together contributed around 85% of FY2026 revenue.

6. Restated Consolidated Financial Information

Particulars (₹ million)FY2026FY2025FY2024
Revenue from Operations4,722.103,613.352,865.18
Total Income4,806.523,766.412,921.36
Total Expenses3,132.292,939.052,687.63
Profit Before Tax (PBT)1,674.23825.95222.99
Profit After Tax (PAT)1,208.23556.12136.09
Basic EPS (₹)12.035.831.35
Diluted EPS (₹)11.815.711.35
Total Assets19,379.046,559.515,477.11
Total Equity5,441.994,175.832,265.11
Total Borrowings429.17627.131,490.44
Net Cash from Operating Activities (CFO)13,677.131,626.23530.48
Capital Expenditure(1,258.94)(1,134.24)(230.45)
Net Cash from/(Used in) Financing Activities(447.16)74.50(664.11)
Cash & Cash Equivalents – Year End12,533.85606.8022.47

7. Key Performance Indicators (KPIs)

Financial KPIs

KPIUnitFY2026FY2025FY2024
Revenue from Operations₹ mn4,722.103,613.352,865.18
EBITDA₹ mn2,342.341,548.851,018.81
EBITDA Margin%49.60%42.86%35.56%
PAT₹ mn1,208.23556.12136.09
PAT Margin%25.59%15.39%4.75%
Return on Equity (RoE)%25.12%17.27%6.23%
Return on Capital Employed (RoCE)%32.78%24.73%14.53%
Days Sales Outstanding (DSO)Days7910188
Debt-to-Equity RatioTimes0.08x0.15x0.66x
Debt Service Coverage RatioTimes16.15x7.00x1.59x

Operational KPIs

KPIUnitFY2026FY2025FY2024
Total CustomersCount2,5011,7141,465
Average Revenue per Customer₹ mn1.892.111.96
Revenue Retention Rate%94.92%96.63%128.24%
Existing Customers – Revenue Mix%72.63%76.63%92.91%
New Customers – Revenue Mix%27.37%23.37%7.09%
BFSI – Revenue Mix%17.53%30.87%18.27%
Government – Revenue Mix%27.37%29.52%34.04%
Enterprises – Revenue Mix%55.09%39.61%47.69%
IaaS – Revenue Mix%43.88%56.36%49.59%
Managed Services – Revenue Mix%41.21%20.94%27.06%
SaaS – Revenue Mix%14.91%22.71%23.35%
Number of Data CentresCount544

8. IPO Valuation

MetricValue
Face Value₹1 per Equity Share
Price Band₹408 – ₹429 per Equity Share
Floor / Cap Price as Multiple of Face Value408x / 429x
Basic EPS (FY2026)₹12.03
Diluted EPS (FY2026)₹11.81
Weighted Average Basic EPS (FY2024–FY2026)₹8.18
Weighted Average Diluted EPS (FY2024–FY2026)₹8.03
P/E at Floor Price (₹408)34.55x
P/E at Cap Price (₹429)36.33x
Industry Peer P/E – E2E Networks(819.78)x*
Nifty 50 P/E20.48x
EV/EBITDA at Floor Price15.40x
EV/EBITDA at Cap Price16.30x
Industry Peer EV/EBITDA – E2E Networks99.49x
Market Cap / Revenue at Floor Price10.20x
Market Cap / Revenue at Cap Price10.65x
Market Cap / Tangible Assets at Floor Price9.07x
Market Cap / Tangible Assets at Cap Price9.47x
NAV per Equity Share (March 31, 2026)₹52.66
NAV Post-IssueNot disclosed in the RHP
RoNW – FY202622.85%
Weighted Average RoNW (FY2024–FY2026)17.09%
WACA – Last 3 Years₹81.72
Cap Price / WACA – Last 3 Years5.25x
WACA – Last 18 Months₹225.00
Cap Price / WACA – Last 18 Months1.91x

9. Peer Comparison

MetricESDS Software Solution LimitedE2E Networks Limited
Revenue from Operations (₹ million, FY2026)4,722.102,455.80
Face Value per Equity Share (₹)1.001.00
Closing Price on NSE – Aug 20, 2026 (₹)Issue Price to be determined623.85
Basic EPS – FY2026 (₹)12.03(0.78)
Diluted EPS – FY2026 (₹)11.81(0.76)
NAV per Share – Mar 31, 2026 (₹)52.6681.97
P/E (Basic EPS)34.55x – 36.33x*(804.97)x
P/E (Diluted EPS)34.55x – 36.33x*(819.78)x
RoNW (%)22.85%(0.92%)
Market Cap / Revenue (times)10.20x – 10.65x*52.22x

10. Shareholding Structure

CategoryNo. of Equity SharesPre-Issue %Post-Issue % at ₹408Post-Issue % at ₹429
Piyush Prakashchandra Somani (Promoter)24,648,67024.54%20.88%21.03%
Komal Piyush Somani (Promoter)10,174,32210.13%8.62%8.68%
P.O. Somani Family Trust (Promoter)11,233,73911.19%9.52%9.59%
Sub-total (Promoters – A)46,056,73145.86%39.01%39.29%
Sarla Prakashchandra Somani (Promoter Group)3,788NegligibleNegligibleNegligible
Pooja Prakashchandra Somani (Promoter Group)100,0110.10%0.08%0.09%
Prajakta Rushikesh Jadhav (Promoter Group)100,0110.10%0.08%0.09%
Sub-total (Promoter Group – B)203,8100.20%0.17%0.17%
Total (A + B)46,260,54146.06%39.18%39.46%

11. Objects of the Issue

ObjectEstimated Amount (₹ million)
Purchase and installation of cloud computing and other equipment and infrastructure for the Relevant Data Centres5,760.00
General Corporate Purposes[●] (to be finalized; ≤ 25% of Gross Proceeds as per SEBI ICDR Regulations)
Total[●] (Gross Proceeds: ₹7,200.00 million; Net Proceeds after issue-related expenses)

Break-up of the ₹5,760 million Object (Cloud Computing Equipment & Infrastructure)

ParticularsEstimated Cost (₹ million)FY 2027 Deployment (₹ mn)FY 2028 Deployment (₹ mn)
Computer servers2,660.001,995.00665.00
Data storage devices833.60625.20208.40
Networking equipment516.40387.30129.10
Infrastructure (electrical, DG sets, PDUs, precision AC, LT panels)1,750.001,312.50437.50
Total5,760.004,320.001,440.00

12. Key Risks Highlighted in the RHP

Risk AreaWhat Investors Should Know
Technology RiskCloud, AI and GPU technology changes quickly. ESDS needs continuous innovation to remain competitive.
Data Centre RiskEquipment failure, power outages or fire could disrupt services and affect customer trust.
Customer ConcentrationThe top customer contributed about 16% of FY2026 revenue, while the top 10 contributed about 45%.
Government DependenceGovernment and PSU customers contributed about 27% of revenue. Changes in budgets, policies or procurement could affect growth.
GPU / AI Execution RiskGrowth depends partly on GPU infrastructure and delivery from vendors. Delays could postpone expected revenue.
Large Customer AdvanceA subsidiary received an advance of about ₹1,176.6 crore for a GPUaaS project. ESDS must now deliver the promised infrastructure.
Capital Intensive BusinessData centres require continuous investment in servers, storage, networking and infrastructure.
CompetitionESDS competes with large global players such as AWS, Microsoft Azure and Google Cloud, which have significantly greater scale and resources.
Cybersecurity RiskA major cyberattack or data breach could lead to financial losses, regulatory action and reputational damage.
Promoter DependenceThe founding promoters continue to hold significant ownership and play an important role in the company's strategy and relationships.
Regulatory / Legal RiskThe company has pending tax matters and a civil suit involving disputed shares and monetary compensation.
Valuation RiskAt ₹429, ESDS is valued at around 36x FY2026 diluted EPS and 16x EV/EBITDA. Any slowdown in growth or margins could pressure the valuation.
IPO Proceeds Execution Risk₹576 crore is planned for equipment purchases, but purchase orders had not yet been placed at the time of the RHP.
No Listed Track RecordThis is ESDS's first public issue, so there is no prior market trading history and the post-listing price may be volatile.

13. Litigation & Contingent Liabilities

Litigations

CategoryCompanyDirectorsPromotersSenior ManagementAmount Involved (₹ mn)
Criminal proceedings – byNilNilNil1 (FIR by Jitendra Pathak)2.15
Other material pending proceedings – against1 (civil suit by Rajeev Papneja)1 (Papneja suit, includes Piyush Somani)1 (Papneja suit, Piyush Somani)NilPapneja: Shares Entitlement I – 142.80; Shares Entitlement II – 42.00
Indirect tax proceedings6 casesNilNil—65.68

Contingent Liabilities and Commitments

ParticularsAs at Mar 31, 2026 (₹ million)As a % of Net Worth
Capital commitments – Estimated amount remaining to be executed on capital account (net of advances)174.443.30%
Contingent Liabilities – Other matters2.620.05%
Guarantees – Performance bank guarantees given to customers526.049.95%
GST demands (F.Y. 2019-20 to 2020-21)23.010.44%
Total contingent liabilities551.6810.43%
Net Worth5,288.12—

Material Creditors and Trade Payables

ParticularsNumber of CreditorsAmount (₹ million)
Dues to Micro, Small and Medium Enterprises1818.17
Dues to Material Creditors3113.21
Dues to Other Creditors218133.40
Total239264.78

14. Registrar to the Issue

15. Book Running Lead Managers

DAM Capital Advisors Limited

ItemDetails
AddressAltimus 2202, Level 22, Pandurang Budhkar Marg, Worli, Mumbai – 400 018, Maharashtra, India
Telephone+91 22 4202 2500
E-mailesds.ipo@damcapital.in
Investor Grievance E-mailcomplaint@damcapital.in
Websitewww.damcapital.in
Contact PersonPuneet Agnihotri
SEBI Registration NumberMB/INM000011336

Systematix Corporate Services Limited

ItemDetails
AddressThe Capital, A-Wing No. 603–606, 6th Floor, Plot No. C-70, G-Block BKC, Bandra East, Mumbai – 400 051, Maharashtra, India
Telephone+91 22 6704 8000
E-mailesds@systematixgroup.in
Investor Grievance E-mailinvestor@systematixgroup.in
Websitewww.systematixgroup.in
Contact PersonJinal Sanghvi / Mohit Ladkani
SEBI Registration NumberINM000004224

17. Company Contact Details

ItemDetails
Registered OfficePlot No. B-24 & 25, NICE Area, MIDC, Satpur, Nashik – 422 007, Maharashtra, India
Corporate OfficeUnit No. B-01, Ground Floor, Empire Tower, Gut No. 31, Mouje Elthan, Thane – 400 708, Maharashtra, India
Telephone+91 253 711 2244
E-mailsecretarial@esds.co.in
Websitewww.esds.co.in
Corporate Identity NumberU72200MH2005PLC155433
Company Secretary & Compliance OfficerPrasad Deochand Deokar
Company Secretary's ContactTelephone: +91 253-771 2244; E-mail: secretarial@esds.co.in
Investor Grievance E-mailsecretarial@esds.co.in

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