ESDS Shares Triple From IPO Price, Hit 20% Upper Circuit For Third Straight Session
Shares of enterprise cloud and AI company ESDS Software Solution hit the 20% upper circuit for the third consecutive session, taking the stock to more than three times its IPO issue price.
ESDS Software Solution's shares reached their 20% upper circuit limit for the third consecutive trading session on Monday, pushing the stock's value to over three times its initial public offering (IPO) price. The stock was trading at ₹1,289.55 on the BSE, bringing ESDS' market capitalization to ₹15,114.9 crore (approximately $1.6 billion USD).
At these levels, ESDS shares were trading 200.6% above their IPO issue price of ₹429 per share. The company debuted on the stock market on September 4, listing at ₹757 on the NSE, a premium of 76.5% over its issue price, and subsequently hit its 20% upper circuit limit on the listing day.
Analysts have expressed optimism regarding ESDS' growth prospects. Choice Institutional Equities initiated coverage with a 'buy' rating and a target price of ₹1,550. The brokerage highlights a significant $1.25 billion AI infrastructure contract with Australia-based Sharon AI as a key growth driver, projecting substantial revenue increases by 2028.
ESDS, founded in 2005, provides cloud computing, data center, and AI-led digital infrastructure solutions to government and enterprise clients in India and abroad. The company plans to allocate approximately 80% of its IPO proceeds towards acquiring and installing cloud computing equipment and data center infrastructure.