ESDS Software Solution shares hit upper circuit for fourth consecutive day; how the stock is performing vs IPO issue price

The stock advanced 10% to its upper circuit of ₹1,438.85 per share on the National Stock Exchange (NSE). Its market capitalisation stands at ₹16,864.90 crore.

ESDS Software Solution: How the stock is performing vs issue price

ESDS Software Solution scrip had listed at ₹757 per share, a premium of 76.46% from the IPO issue price of ₹429 per share, on the NSE on September 4. Since its listing, the stock has hit the upper circuit every day.

So far, it has gained 235.39% compared to the issue price.

The initial public offering was only a fresh issuance of 1.68 crore shares totalling ₹720 crore. There was no offer for sale (OFS) component.

The fresh issue proceeds will be used for the following objectives:

• Buy and install cloud computing and other equipment and infrastructure for data centres
• 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 firm said in its red herring prospectus.

The IPO was subscribed a whopping 135.88 times, as it got bids for 1,67,85,63,340 equity shares against 1,23,52,942 shares reserved.

ESDS Software Solution: Financials

ESDS Software Solution Ltd is a technology infrastructure player, offering cloud computing, managed services, data centre infrastructure and software solutions. It provides Infrastructure-as-a-Service (IaaS), managed services and Software-as-a-Service (SaaS) to government organisations, enterprises, and BFSI customers.

It is one of the only two players in India providing the entire spectrum of GPU-as-a-Service (GPUaaS), data centre infrastructure, cloud, managed services, and software solutions.