ESDS IPO GMP Today: 78% Listing Gain On Cards? Check Day 2 Subscription Status & Should You Apply?

After being fully subscribed on the first day, ESDS Software Solution IPO is again receiving massive investor attention on the second day of bidding as the company's shares in the official market trading at a hefty 78% premium.

ESDS IPO GMP Today

According to the latest available GMP data updated on August 31st, ESDS Software Solution shares are trading at an estimated Rs. 335 premium in the grey market. If we take the IPO's upper price band which is fixed at Rs. 429 per share, the indicative listing price works out to Rs, 764 which is approximately 78.09%.

However, investors should remember that GMP is an unofficial market data and does not guarantee the actual listing price.

ESDS IPO Subscription Status

The Rs. 720-crore ESDS Software Solution IPO opened for subscription on August 28 and will be open until September 1st. On Day 1, the issue was subscribed 2.21 times, according to the BSE data. The retail portion was subscribed 2.84 times, while the Non-Institutional Investor (NII) category was subscribed 3.70 times. The QIB portion, excluding the anchor allocation, stood at 0.01 times at the time of writing.

ESDS IPO Details: Price Band, Lot Size

ESDS Software Solution has fixed the IPO price band at Rs. 408 to Rs. 429 per share. The IPO is entirely a fresh issue of approximately 1.68 crore equity shares, aggregating up to Rs. 720 crore at the upper price band. There is no offer-for-sale component.

The IPO lot size is 34 shares. At the upper price band of Rs. 429, retail investors need to invest a minimum of Rs. 14,586 for one lot.
The allotment of the IPO will be done September 2nd with the refund or unblocking of funds to be carried out on September 3rd. The company is expected to list its shares on both the NSE and BSE ON September 4th.

Should You Take A Bet On ESDS IPO?

Looking at the huge GMP and healthy subscription numbers ESDS Software Solution seems attractive to investors who are looking for potential listing gains. The IPO has also received support from anchor investors, with the company raising Rs. 216 crore from its anchor book ahead of the public issue.

That said, a high GMP alone should not be the basis for an investment decision.

Swastika Investmart Ltd. in its IPO note said, "ESDS is a richly-valued, high-growth niche tech play with no clean valuation anchor. Rising demand for cloud computing, data-centre infrastructure, cybersecurity and digitalisation in India provides a favourable structural growth opportunity for ESDS over the long term."

The brokerage firm has provided Apply rating to the IPO .

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