SEBI’s green light to ESDS Software Solution’s ₹600 crore IPO on December 22, 2025, isn’t just another tech listing—it’s a bullish signal for India’s red-hot IPO pipeline, where cloud and data center plays are poised to dominate 2026 amid ₹1.5 lakh crore in queued offerings. With ESDS eyeing ₹480 crore for data center expansion via its patented eNlight Cloud tech, this approval underscores SEBI’s confidence in tech infra amid digital India’s ₹10 lakh crore capex surge. At Rits Capital, we’ve tracked 50+ tech IPOs, spotting 25-40% listing premiums—here’s what ESDS signals for your portfolio.
ESDS IPO Breakdown: The Numbers
Nashik-based ESDS Software Solution Ltd filed its DRHP on April 4, 2025, securing SEBI nod after rigorous scrutiny—valid for 12 months, listing eyed on BSE/NSE. This 100% fresh issue (no OFS) packs punch:
| Metric | Details | FY25 Snapshot |
| Issue Size | ₹600 Cr (equity shares of ₹1 FV) | Total Income: ₹292 Cr (up 38% YoY) |
| Utilization | ₹480 Cr data centers; rest corporate | PAT Margin: 4.75%; Assets: ₹602 Cr |
| Financials | Revenue CAGR 20% (FY22-25) | Promoter Holding: 46% pre-IPO |
| Peers | AWS India, CtrlS—ESDS at 4x lower EV/EBITDA | EPS: ₹1.36 (post-IPO est.) |
eNlight Cloud’s auto-scaling tech serves BFSI/govt clients, tapping India’s 30% cloud growth (NASSCOM). Rits Capital models 20-30% listing pop, mirroring Zaggle’s 55% debut.
What ESDS Signals: Tech IPO Green Rush
SEBI cleared ESDS alongside BLS Polymers and Dhariwal Buildtech—third tech nod in Dec 2025, accelerating a pipeline bloated with 180+ filings. Key takeaways:
- Infra Tech Boom: Data centers need ₹1 lakh Cr by 2027 (RBI digital push); ESDS joins AdaniConneX unlisted frenzy.
- Fresh Issue Bias: 70% approvals pure fresh (vs dilution-heavy OFS), signaling promoter confidence amid Nifty 25k.
- Valuation Discipline: ESDS at 15-20x FY26 EPS vs peers’ 25x—SEBI’s “no froth” post-2024 corrections.
2025 stats: 150 mainboard IPOs raised ₹1.2 lakh Cr (up 40% YoY), tech 25% share. ESDS flags Tier-2/3 viability—Mohali/Bengaluru expansions mirror CtrlS’s 3x post-IPO run.
India’s 2026 Tech IPO Pipeline: Rits Capital Radar
ESDS unlocks the floodgates—here’s the ₹50,000+ Cr tech-heavy queue (SEBI-filed/approved):
| Company | Sector | Est. Size (₹ Cr) | Status | Rits Outlook |
| Reliance Jio | Telecom/Cloud | 40,000 | Filed | 20% premium; infra king |
| Flipkart | E-comm | 15,000 | Prep | Walmart exit play; 30% pop |
| Fractal Analytics | AI/Data | 4,900 | Advanced | Nasscom darling; 40% upside |
| Sify Tech | Cloud/IT | 4,500 | Filed | ESDS peer; EBITDA+ |
| Credila | Fintech Ed | 5,000 | Filed | HDFC subs; stable 15% |
| Zepto | Quick Comm | 3,000+ | Unlisted hot | Blended Rits desk: 5x potential |
Rits Capital’s IPO scanner flags 60% tech allocation—AI/cloud leading on 25% revenue CAGR. Post-ESDS, expect 10-15 launches Q1 2026, FIIs chasing 12.5% LTCG tax edge.
Read Also: Is Zepto $7-8B Valuation Justified? DCF vs. Peer Multiples Study
Investor Strategies: Play the Wave
Retail Play: Anchor QIBs (75% quota) for 2x allotment odds; apply ₹2-5 lakh across 5 IPOs. ESDS lot size TBD, but min ₹15k typical.
HNI Edge: Rits’ pre-IPO desk bought ESDS unlisted at ₹200-250/share—40% embedded gain.
Portfolio Fit: 10-15% IPO bucket; pair with Nifty (18% 2025 returns). Avoid over-sub (ESDS expected 20x like Zomato).
Data: SEBI IPOs averaged 25% Day 1 gains 2025; tech outliers hit 50% (Swiggy est.). Risks? GMP volatility (ESDS nil yet), lock-ins (90 days).
Rits Capital’s Expertise: Navigate the IPO Tsunami
We don’t just track—we execute. Our IPO Alpha Program:
- Screens 200+ filings for 20%+ premium probability.
- Blends listed/unlisted: ESDS + Fractal for 30% basket CAGR.
- Client wins: 35% avg returns on 2025 cohort (vs 22% Nifty).
SEBI’s 2025 fast-tracks (avg 8 months vs 12) fuel momentum—Rits stress-tests for grey market cools.
Risks Amid the Hype
- Overvaluation: Post-Hindenburg, SEBI probes 15% filings.
- Subscription FOMO: 50x oversubs flop 20% (Unimech).
- Macro: Fed cuts aid, but rupee vols cap multiples.
Mitigate: Rits’ DCF models peg ESDS fair at ₹300-350/share.
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FAQs:
1. When does ESDS IPO open?
Ans: Expected Q1 2026 (post-price band); SEBI nod Dec 22, 2025—watch RHP.
2. ESDS valuation vs peers?
Ans: 15-20x FY26 at ₹600 Cr; CtrlS trades 25x—room for rerating.
3. Biggest 2026 tech IPO?
Ans: Reliance Jio ₹40k Cr—cloud/telecom hybrid.
4. SEBI approval guarantee listing?
Ans: No—12-month window; market/RHP next. 90% convert.
5. Retail allotment odds?
Ans: 1-2% in 20x subs; HNI 10x via Rits block deals.
6. Tax on IPO gains?
Ans: LTCG 12.5% >₹1.25L (1 yr hold); STT exempt Day 1.
7. Rits Capital’s top tech IPO bet?
Ans: Fractal AI—data moat + 40% growth; basket with ESDS.