ESDS Software Solution's stock surged to a 10% upper circuit for the fourth consecutive trading session on September 9, reaching ₹1,418.50 on the BSE, more than 3.3 times its IPO price of ₹429. The company's market capitalization hit ₹16,626.38 crore ($1.75 billion), with shares locked at the upper circuit on both BSE and NSE, marking a 90% gain from its listing price of ₹746.30 on September 4, according to inc42.com.
The company debuted on the stock market last Friday, listing at ₹757 on the NSE and ₹746.30 on the BSE, premiums of 76.5% and nearly 74% over the IPO price, respectively. ESDS's shares hit their 20% upper circuits on the listing day and have remained locked at upper circuit limits since. The IPO, comprising a ₹720 crore fresh issue, was fully subscribed within hours and closed with an oversubscription of 135.88 times, with qualified institutional buyers oversubscribing their quota by 261.51 times, inc42.com reported.
ESDS had set a price band of ₹408 to ₹429 per share for its public issue, targeting a valuation of about ₹5,028 crore ($527 million). The strong investor demand reflects growing interest in enterprise cloud and AI companies, with ESDS’s performance standing out among recent IPOs in the sector. The company's ability to attract ₹216 crore from anchor investors before the IPO further underscored confidence in its business model and growth prospects, according to inc42.com.
ESDS's stock market debut and subsequent rally have positioned it as a significant player in the enterprise cloud and AI space, with its market capitalization now at ₹16,626.38 crore ($1.75 billion). The company’s shares remain locked at the upper circuit limit as of September 9, marking a notable milestone in its public market journey, inc42.com stated.