Shares of enterprise cloud and AI company ESDS Software Solution surged to more than three times their IPO issue price, hitting the 20% upper circuit for the third consecutive session. The stock was locked at ₹1,289.55 on the BSE and ₹1,308.05 on the NSE, pushing ESDS’ market capitalization to ₹15,114.9 crore ($1.6 billion) as of today, September 8, according to inc42.com.
ESDS debuted on the stock market on September 4, listing at ₹757 on the NSE and ₹746.30 on the BSE, premiums of 76.5% and nearly 74% over the ₹429 IPO issue price, respectively. The shares immediately hit their 20% upper circuits on both exchanges and have remained locked at those limits through the subsequent sessions. Choice Institutional Equities initiated coverage on ESDS with a buy rating and a target price of ₹1,550, citing the company’s $1.25 billion AI infrastructure contract with Australia-based Sharon AI as a key growth driver.
The stock’s rally underscores strong investor confidence in ESDS’s growth prospects, especially given its AI infrastructure deal. The brokerage projects ESDS’s operating revenue to increase nearly 9.7 times from ₹472 crore in FY26 to ₹4,581 crore by FY28. This rapid expansion positions ESDS among notable enterprise cloud and AI firms in India, reflecting growing market interest in AI-driven cloud services and infrastructure contracts.
Choice Institutional Equities’ target price of ₹1,550 implies an 18.5% upside from the current NSE price of ₹1,308.05. ESDS’s market capitalization now stands at ₹15,114.9 crore, marking a significant milestone for the company four days after its IPO debut.