ESDS Software Solution Shares Zoom 20% On Debut, Stock Doubles From IPO Price Within Minutes Of NSE Listing
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ESDS Software Solution shares jumped 20% to hit the upper circuit at Rs 908.40 on debut, more than doubling from the IPO price of Rs 429 after the issue was subscribed around 136 times during bidding.
Shares of ESDS Software Solution delivered a blockbuster stock market debut on Friday, surging 20% and more than doubling from their issue price within minutes of listing on the exchanges. The stock listed at ₹757 apiece on the NSE, a 76.46% premium over its IPO price of ₹429, before extending gains to hit the 20% upper circuit at ₹908.40. At its intraday high, the stock was up 111.75% from the issue price.
The sharp move lifted ESDS Software Solution's market capitalisation by around ₹1,775 crore within minutes of trading, taking it to more than ₹10,647 crore from about ₹8,873 crore at the time of listing.
Strong Demand During The IPO
The stellar listing followed an overwhelming response to the company's public issue, which was subscribed 135.88 times during the three-day bidding period from August 28 to September 1.
Qualified institutional buyers (QIBs) led the demand, with their portion subscribed 261.51 times. The non-institutional investor (NII) portion was subscribed 192.94 times, while the retail portion was booked 39.64 times.
ESDS Software Solution had raised ₹720 crore through a fresh issue of shares. The IPO carried a price band of ₹408 to ₹429 per share, with the final issue price fixed at the upper end of the band.
Before the public issue opened, the company raised ₹216 crore from anchor investors through the allotment of 50.34 lakh shares at ₹429 apiece.
About The Company
ESDS Software Solution provides infrastructure-as-a-service (IaaS), managed services and software-as-a-service (SaaS) offerings to domestic and overseas customers across the banking, financial services and insurance (BFSI), government and enterprise segments.
The company's offerings include cloud infrastructure, data centre services, managed IT services and software solutions. Its IPO proceeds are intended primarily towards the purchase and installation of cloud computing equipment and other infrastructure for its data centres, with the remaining funds earmarked for general corporate purposes.
The strong demand for the IPO came alongside growth in the company's financial performance, helping set the stage for its sharp debut on the stock exchanges.
ESDS Software Solution IPO: Key Details
The ESDS Software Solution IPO was open for subscription between August 28 and September 1. The issue comprised 1.68 crore shares and had a price band of ₹408-₹429 per share.
The minimum lot size was 34 shares, requiring an investment of ₹14,586 at the upper end of the price band. The shares were listed on both the NSE and BSE on September 4.
The stock's debut gives IPO allottees a substantial listing gain, with shares trading more than twice the issue price shortly after entering the secondary market.
Also Read - NSE IPO Optimism Sends IFCI Shares To Record High With Over 8% Surge; Stock Up 35% In 1 Month
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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