ESDS Software shares hit 20% upper circuit on Day 2 of listing, surge over 154% from IPO issue price

The stock advanced 20% to ₹1,090.05 per share, its upper circuit level, on the National Stock Exchange (NSE). The company's market capitalisation stands at ₹12,776.58 crore.

The scrip has risen 154.09% over the IPO issue price of ₹429 per share.

The company's equity shares debuted at ₹757 per share, reflecting a premium of 76.46% over the issue price on NSE on September 4. Later, the stock hit its upper circuit.

On the BSE, it was listed at ₹746.30, up 73.96% from the issue price.

The ₹720 crore initial public offering was a fresh issue of 1.68 crore shares, with no offer for sale component.

Money raised to the tune of ₹576 crore will be used to buy and install cloud computing and other equipment and infrastructure for data centres. The rest will be utilised for general corporate purposes.

"Our company expects that the listing of the equity shares on the stock exchanges will enhance our visibility and our brand image among our existing and potential customers and create a public market for the equity shares of our company," the company said in its red herring prospectus.

The issue was subscribed 135.88 times during the three-day bidding window. It received bids for 1,67,85,63,340 shares versus 1,23,52,942 shares on offer.

Qualified institutional investors led the bidding, as they subscribed their part 261.51 times. The quota of non-institutional investors was booked 192.94 times, while retail investors portion was subscribed 39.64 times.

Prior to the IPO, the company mobilised ₹206 crore from anchor investors, including Quant Mutual Fund, Bandhan Mutual Fund, Motilal Oswal Mutual Fund, Bajaj General Insurance, Sanshi Fund-I, Samco Mutual Fund, CP Capital and Meru Investment Fund PCC-Cell 1.

ESDS Software Solution is an artificial intelligence-enabled cloud, managed services, data centre infrastructure and software solutions provider.