ESDS Software Solution opens its Rs 720-crore IPO with a price band of Rs 408-429

ESDS Software Solution, a Nashik-based company that runs data centres and sells cloud hosting services to businesses and government departments, has opened its initial public offering. The issue is worth about Rs 720 crore and the price band has been set at Rs 408 to Rs 429 per share. Bidding runs from 28 August to 1 September, with anchor investors having placed their bids a day earlier.

The offer is entirely a fresh issue of shares, which means the money raised goes to the company rather than to existing shareholders selling out. ESDS has said the bulk of the proceeds, around Rs 576 crore, will be spent on buying and installing cloud computing equipment and other infrastructure for its data centres, with the rest going to general corporate purposes.

Much of the search interest comes from investors checking the unofficial grey market premium, or GMP, ahead of listing. That figure is an informal, unregulated indicator and is not a reliable guide to how a stock will actually trade. Allotment is expected around 2 September, with a tentative listing on the NSE and BSE on 4 September. This is an explainer, not investment advice.