ESDS's $75M IPO ignites India's data centre listing race

What's the deal? ESDS Software SolutionDealroom has a profile for this one. Try Dealroom → raised 7.2 billion rupees (about $75 million) in an initial public offering that debuted on September 4 and has since ranked among India's strongest new listings of the year. The Nashik-based cloud and data-centre company's shares listed at 757 rupees against an issue price of 429 rupees, then surged more than threefold. The offering was entirely a fresh issue and was subscribed 135.88 times.

Why now? India's equity market is worth around $5 trillion, yet investors have few listed ways to bet directly on cloud computing, data centres, and AI infrastructure. ESDS's rally has sharpened interest in that gap.

What's the endgame? ESDS provides cloud infrastructure, colocation, GPU-as-a-service, and software solutions, running data centres in Airoli, Bengaluru, Nashik, Noida, and Mohali, with facilities proposed in Kolkata and Sahibabad. A five-year, $1.25 billion AI cloud agreement with Australia's Sharon AIDealroom has a profile for this one. Try Dealroom → — deploying around 8,000 Nvidia B300 GPUs — is expected to start generating revenue in the third quarter of 2026.

By the numbers: ESDS reported consolidated revenue of 4.72 billion rupees and net profit of 1.21 billion rupees for the year ended March 31, 2026, up from 3.61 billion rupees a year earlier. Around 27.4% of revenue came from government entities. One analyst, Kunal Bajaj of Choice Institutional EquitiesDealroom has a profile for this one. Try Dealroom →, projects revenue could more than quadruple to nearly 23 billion rupees in the year ending March 2027.

What could go wrong? The stock has already shown sharp volatility, including consecutive lower circuits after gaining about 325% in seven trading sessions. With coverage from a single analyst, investors have thin independent scrutiny of the projections.

The signal: "ESDS's success strengthens the case for more such companies to tap the market," said Avinash Gorakshakar, founder of Avinash Mentor Research. The debut has drawn attention to potential listings from Sify Infinit SpacesDealroom has a profile for this one. Try Dealroom →, Yotta Data ServicesDealroom has a profile for this one. Try Dealroom →, and STT Global Data Centres IndiaDealroom has a profile for this one. Try Dealroom →, while scarcity has turned suppliers such as Sterlite TechnologiesDealroom has a profile for this one. Try Dealroom → — up more than 700% this year — and HFCLDealroom has a profile for this one. Try Dealroom → into sector proxies. "Investors are pricing at least the next two years of growth," Gorakshakar said.

Read more: daijiworld.com

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