ESDS Software shares hit upper price limit as investors pour in after strong IPO debut

ESDS Software's stock was locked at the 20% upper circuit on Monday, trading at the upper price band of ₹1,074.65 after opening with only buy orders for 2.18 million shares across the BSE and NSE. The company debuted on Friday at a premium of roughly 76% over its offer price, quickly climbing to more than double that level. Choice Broking started coverage with a Buy recommendation, pointing to the firm's full-stack capabilities in cloud, managed infrastructure and data-centre services and a sizable AI contract that could boost earnings.

The brokerage projected robust revenue and profit growth through FY26-29 and set a target price of ₹1,550, implying further upside. Conversely, Arun Kejriwal of Kejriwal Research & Investment Services cautioned that the stock may already reflect optimistic forecasts and flagged a controversial agreement with an Australian firm that requires clarification after the June results call. The IPO attracted 135.88 times overall subscription, with strong demand from institutional and retail investors, and the ₹720-crore proceeds are earmarked for cloud and data-centre equipment and general corporate use.