ESDS IPO Subscribed Over 8 Times on Day 2
ESDS Software Solution's IPO saw subscription levels exceed eight times within the first two hours of Day 2 bidding. Strong demand was particularly noted from non-institutional investors.
The initial public offering (IPO) of ESDS Software Solution, an enterprise cloud and AI company, was subscribed more than eight times within the first two hours of bidding on its second day. The strong demand was primarily driven by non-institutional investors (NII) and retail investors.
As of 10:51 AM Indian Standard Time, bids had been placed for 9.99 crore shares against the 1.24 crore shares on offer, indicating an overall subscription rate of 8.08 times, according to BSE data. The NII portion was the most sought after, achieving a subscription of 22 times its reserved amount.
Retail investors subscribed 6.72 times their allocated portion. Qualified Institutional Buyers (QIBs), however, showed muted participation, with their segment subscribed only 0.04 times. The IPO offers investors exposure to India's burgeoning cloud and AI infrastructure sector.
ESDS is aiming to raise ₹720 crore through this IPO, which closes tomorrow. Shares are expected to list on the BSE and NSE on September 4. The company has set a price band of ₹408-₹429 per share, valuing it at approximately ₹5,028 crore at the upper end.
Founded in 2005 and based in Nashik, ESDS provides cloud computing, data center, managed services, and AI-led digital solutions. The company plans to allocate ₹576 crore of the proceeds towards purchasing and installing cloud computing equipment and infrastructure, with the remainder for general corporate purposes.