ESDS Software Solution shares were locked at the 20% upper circuit for a second straight session on Monday, 7 September 2026, hitting ₹1,090.05 on the NSE and taking gains to about 154% over the ₹429 IPO price.
Second Session in a Row with Only Buyers
The stock opened at its circuit limit and stayed there. On the NSE it was locked at ₹1,090.05 against Friday’s close of ₹908.40, while on the BSE it was stuck at ₹1,074.65.
An upper circuit is the highest price a stock is allowed to reach in a single session. Once it is hit, buy orders keep piling up but sellers are scarce, so most orders simply do not get matched.
As of 10:05 AM IST, there were only buy orders for about 21.8 lakh shares across the BSE and NSE combined, with almost nothing on the sell side, Business Standard reported.
At ₹1,090.05, the company’s market value on the NSE stood at about ₹12,776.6 crore.
How Friday’s Debut Set up the Rally
ESDS Software listed on 4 September 2026. It opened at ₹757 on the NSE, a premium of 76.46% over the ₹429 issue price, and at ₹746.30 on the BSE, up 73.96%.
Buying continued through the day and the stock closed at its 20% upper circuit of ₹908.40 on the NSE and ₹895.55 on the BSE. That worked out to a first-day gain of 111.75%.
Turnover on listing day was ₹1,461.3 crore across both exchanges, with about 157.9 lakh shares traded on the NSE alone.
The IPO in Numbers
| Detail | Figure |
|---|---|
| Issue size | ₹720 crore, entirely a fresh issue |
| Price band | ₹408 to ₹429 per share |
| Final issue price | ₹429 |
| Bidding period | 28 August to 1 September 2026 |
| Overall subscription | 135.88 times |
| QIB portion | 261.51 times |
| Non-institutional portion | 192.94 times |
| Retail portion | 39.64 times |
| Anchor book | ₹216 crore (50.34 lakh shares at ₹429) |
| Listing date | 4 September 2026 |
| Main use of proceeds | ₹576 crore for cloud and data centre equipment |
Choice Broking Starts Coverage with a ₹1,550 Target
Choice Institutional Equities initiated coverage on ESDS Software on Monday with a ‘buy’ rating and a target price of ₹1,550. That sits roughly 42% above the stock’s NSE circuit price of ₹1,090.05.
The brokerage’s case rests on India’s cloud and data centre build-out, and on the company’s spread across cloud services, colocation, GPU-as-a-Service, managed services and software-as-a-service. GPU-as-a-Service means renting out high-end computing chips of the kind used to train and run AI models.
Choice expects revenue to rise from ₹472 crore in FY 2025-26 to about ₹4,580 crore by FY 2027-28. It projects revenue, EBITDA and profit after tax to grow at 120.9%, 72.6% and 81.3% compound annual rates between FY 2025-26 and FY 2028-29.
These are one brokerage’s estimates, not company guidance.
The Sharon AI contract Behind the Growth Story
A large part of that forecast rests on an agreement ESDS signed with Sharon AI, a Nasdaq-listed cloud computing company based in Australia.
Announced on 1 April 2026, the five-year deal carries a total contract value of US$1.25 billion, roughly ₹11,800 crore at an exchange rate of about ₹94.4 to the dollar. ESDS is the customer here, and Sharon AI will deploy a cluster of about 8,208 NVIDIA B300 GPUs for it inside an existing Australian data centre, with an option to extend the term by two more years.
Choice sees the ramp-up of this AI infrastructure as a fresh earnings leg, but also lists execution of the contract as one of its main risks.
Where Market Voices are Urging Caution
Shivani Nyati, Head of Wealth at Swastika Investmart, told Moneycontrol that demand for cloud computing, data centre infrastructure, cybersecurity and digitalisation in India supports a favourable long-term view. She also cautioned that some near-term profit booking is possible, as valuations have moved ahead of fundamentals.
Arun Kejriwal of Kejriwal Research & Investment Services told Business Standard that chasing the stock is not advisable, and that expectations for FY 2026-27 through FY 2028-29 already appear priced in. He added that there is some controversy around the Australian agreement, and that clarity should come on the company’s April to June quarter (Q1 FY 2026-27) earnings call.
Choice’s own risk list covers contract execution, customer concentration, the capital-heavy nature of data centre expansion, and rising competition.
There was early selling from one pre-IPO holder too. Anchorage Capital Scheme I sold 10.03 lakh shares, a 0.85% stake, at ₹757.44 apiece for ₹76.01 crore on listing day, according to Moneycontrol. It had held 1.13% before listing.
What to Watch Next
Three things will shape the next leg: how quickly the ₹576 crore earmarked for cloud and data centre equipment is deployed, the first set of results and management commentary after listing, and whether buying interest holds once the stock stops hitting circuit limits.
Anyone tracking or buying a newly listed stock like this open a demat account, since shares are held in electronic form. During a circuit lock, orders often go unfilled, which is visible in real time on any online trading platform through the 9:15 AM to 3:30 PM IST session.
Investments in the securities market are subject to market risks. This article is for information only and is not investment advice.
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