ESDS Software Solution IPO Oversubscribed 42.7 Times
Enterprise cloud and AI company ESDS Software Solution's IPO saw a significant oversubscription, closing at 42.7 times the offered shares, indicating strong investor confidence in its expansion plans.
The Initial Public Offering (IPO) for enterprise cloud and AI solutions provider ESDS Software Solution was heavily oversubscribed, reaching 42.7 times its offered shares by the end of the third bidding day. Investors placed bids for 52.77 million shares against the 1.24 million shares available, highlighting substantial demand in the Indian market.
The Non-Institutional Investor (NII) category led the subscription, with its portion being booked 125.68 times. Retail investors also showed strong interest, subscribing at 28.4 times. Qualified Institutional Buyers (QIBs) increased their participation significantly on the final day, achieving a subscription rate of 5.54 times.
ESDS plans to utilize the ₹720 crore raised from the IPO for significant infrastructure investments. The company intends to allocate ₹576 crore towards purchasing and installing cloud computing equipment and data center infrastructure across its facilities in Airoli, Bengaluru, Mohali, and Nashik. The remaining funds will support general corporate purposes.
Prior to the IPO, ESDS successfully raised ₹216 crore from anchor investors. Founded in 2005 and based in Nashik, ESDS offers cloud computing, data center, managed services, and AI-led digital solutions to government and enterprise clients. This marks the company's second attempt at a public offering, having initially filed its IPO papers in September 2021.