ESDS Software Solution sets IPO price band at Rs 408-429

ESDS Software Solution has set a price band of Rs 408 to Rs 429 a share for its initial public offering, which will open for subscription on 28 August.

The offering consists of a fresh issue of up to Rs 7,200 million, with bids starting at 34 equity shares and in multiples of 34 thereafter. The company plans to list its shares on the NSE and BSE.

Incorporated in 2005, ESDS Software Solution provides cloud, managed services, data centre infrastructure and software services in India. Its customers include banking, financial services and insurance firms, public sector bodies and private businesses.

The company served 2,501 customers in fiscal 2026. Revenue from operations rose to Rs 4,722.10 million in fiscal 2026 from Rs 2,865.18 million in fiscal 2024, while net profit increased to Rs 1,208.23 million from Rs 136.09 million.

Before the issue, it had 100,427,753 outstanding equity shares with a face value of Rs 1 each.

Business mix

The group's platform includes infrastructure as a service, managed services and software as a service. Within infrastructure as a service, it offers colocation, data centre services, cloud services and cloud computing.

According to the company, it is one of two players in India offering GPU as a service, cloud, managed services, data centre infrastructure and software services across the full range of those segments. Citing a Nexdigm report, it added that it had the higher revenue from operations of the two in fiscal 2026.

Its customer base spans regulated industries, government users and corporate clients, reflecting a mix of public and private sector demand. The company also describes itself as one of the early cloud service providers in India to offer community cloud services on a multi-tenant model for organisations with similar compliance and security requirements.

AI agreement

A notable part of its recent expansion is a strategic AI cloud infrastructure agreement signed on 31 March 2026 with an Australia-based neocloud AI compute service provider. The agreement has an initial term of five years, with an option to extend it by a further two years.

The total contract value is about USD $1.25 billion, equivalent to Rs 118,312.50 million at the exchange rate prevailing on 31 March 2026, according to the company. Under the agreement, the AI company will deploy and operate a dedicated AI infrastructure cluster within an existing data centre facility in Australia.

The cluster is expected to include about 8,208 NVIDIA B300 GPUs and associated storage infrastructure. Delivery is targeted for completion by September 2026, and revenue generation under the agreement is expected to begin in the third quarter of fiscal 2027.

Service fees under the arrangement are payable monthly. The agreement gives ESDS exposure to a large overseas project as investor interest in AI-related infrastructure and cloud computing businesses remains strong.

IPO backdrop

The proposed issue comes as technology and digital infrastructure companies seek to tap equity markets amid demand for cloud services, data processing and AI computing. For ESDS, the share sale offers a way to raise fresh capital while establishing a listed market value for a business that has reported sharp growth in revenue and profit over the past two fiscal years.

Investors are likely to focus on whether the company can sustain recent earnings growth, convert large infrastructure agreements into steady revenue and maintain margins in a market that includes larger cloud and data centre rivals. They will also weigh its exposure to public sector and regulated-industry clients, which can support long-term contracts but may also bring procurement and execution risks.

The book-running lead managers to the issue are DAM Capital Advisors and Systematix Corporate Services. MUFG Intime India is the registrar to the issue.

The issue offers public market investors exposure to a domestic cloud and software services business that is also building an international AI infrastructure link through the Australian agreement. It also highlights how Indian technology groups are increasingly presenting themselves to investors through a mix of recurring services revenue, infrastructure ownership and AI-related contracts.

The minimum application size is 34 shares.