Subex Ltd. Share Price

ESDS Software Solution

• ESDS Software Solution is coming out with a 100% book building; initial public offering (IPO) of 1,76,47,058 shares of face value Rs 1 each in a price band Rs 408-429 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on August 28, 2026 and will close on September 1, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 408 times of its face value on the lower side and 429 times on the higher side.
• Book running lead managers to the issue are DAM Capital Advisors and Systematix Corporate Services.
• Compliance officer for the issue is Prasad Deochand Deokar. 

Profile of the company

ESDS Software Solution is an AI-enabled cloud, managed services, data centre infrastructure and software solutions provider in India. It is one of the only two players in India providing the entire spectrum of GPUaaS, cloud, managed services, data centre infrastructure and software solutions in India. It offers a comprehensive platform of cloud infrastructure and software solutions consisting of (i) infrastructure as a service (IaaS), which is broadly divided into colocation and data centre services, cloud services and cloud computing, (ii) managed services, and (iii) software as a service (SaaS), which allows to provide well-architected cloud-adoption solutions to its customers aimed at reducing their cost while providing security, flexibility, scalability and reliability. The company was one of the first cloud service providers in India to offer community cloud services, provided on a multi-tenant model to a group of organizations with similar business models and requirements, such as data privacy, security, compliances and regulatory requirements.

The company provides its services to a diverse range of end-user industries and customers, comprising: (i) banking, financial services and insurance companies (BFSI); (ii) public sector entities, including central, state, and local government departments, public sector undertakings (PSUs), government agencies, and institutions that procure products or services for administrative, infrastructure, or public service purposes (Government); (iii) and businesses and enterprises not included in BFSI or Government (Enterprises).

Proceed is being used for: 

• Purchase and installation of cloud computing and other equipment and infrastructure for its relevant data centres 
• General corporate purposes

Industry overview

The IT/ITES industry in India continues to be a key pillar of economic growth, exports, innovation, and employment. The sector is increasingly driven by demand for artificial intelligence (AI), cloud computing, digital engineering, cybersecurity, data analytics, and platform-based services, as enterprises globally accelerate technology-led transformation initiatives. India has also strengthened its position as a preferred destination for Global Capability Centers (GCCs), engineering R&D, and high-value digital services. India’s technology industry is expected to cross $315 billion by 2026 and contribute 10% towards the country’s GDP. Direct employment in the sector is projected to reach approximately 6 million professionals in FY 2026, with a net addition of around 135,000 jobs over the previous year.

The growing demand for digital services is a crucial factor driving the expansion of data centres in India. The proliferation of smart devices, increased use of digital payments, and the shift towards cloud-based solutions have significantly increased the need for data storage capabilities. The data centre market in India is valued at Rs 114 billion for FY 2026 and has grown at a CAGR of 20.39% from FY 2020 to FY 2025. The market in the future is expected to grow at a CAGR of 20.70% from Rs 114 billion in FY 2026 to Rs 242 billion in FY 2030. As of 31st March 2026, the total data centre installed capacity in India is 1,545 MW.

Indian software development market has demonstrated significant growth over the past few years, particularly following a boom in the IT industry in 2021. During FY 2020 to FY 2026, the market revenues increased from Rs 2,695 billion to Rs 3,961 billion, reflecting a CAGR of 6.63%. This steady growth trajectory highlights the industry’s resilience and adaptability amid global economic fluctuations. During the forecasted period, software development industry in India is poised for robust expansion. Projections indicate that the market will continue to grow at a CAGR of 8.95%, increasing from Rs 3,961 billion for FY 2026 to an estimated Rs 5,581 billion by the end of FY 2030.

Pros and strengths 

The company is leading player offering end-to-end cloud, managed services, data centre infrastructure and software solutions in India: Among the Indian players, it was one of the early adopters of cloud technology in India, establishing its first data centre in Nashik, Maharashtra during 2010 and launching cloud services in 2011 (which was launched as eNLight Cloud and rebranded as SWARAJ Cloud). Recognising the need for holistic solutions, it introduced end-to-end offerings integrating infrastructure, managed services, and application support. Among the leading players in the cloud, managed services, data centre infrastructure and software solutions, it is one of the only two players providing the entire spectrum of GPUaaS, cloud, managed services, data centre infrastructure and software solutions in India. Its ability to offer end-to-end cloud, data centre and software solutions has enabled the company to focus on its Revenue Retention Rates as a larger share of existing customers increase their service scope to include its comprehensive range of IaaS, SaaS and managed services. This is reflected in its Revenue Retention Rates and by the split of customers who are availing the comprehensive product and service suite versus those engaging with the company for standalone services.

Comprehensive Security-as-a-Service framework: As a cybersecurity partner, it delivers Security as a Service (SECaaS) solutions to enterprises, BFSI institutions, and government organisations. Its Security Operations Centre (SOC) actively monitors and mitigates cyber threats, ensuring operational resilience and regulatory compliance. With more than 123 customers onboarded across more than 7,175 devices as at June 30, 2026, its security information and event management (SIEM) programs analysed more than 5,143 security alerts in the period from January 1, 2026 to June 30, 2026. As organisations increasingly adopt SECaaS, several BFSI institutions and enterprises have engaged it for the provision of cybersecurity solutions as standalone services. Its comprehensive security framework, encompassing SIEM, endpoint security, vulnerability management, and incident response, provides scalable and cost-efficient protection against evolving cyber risks.

It has long-term relationships with well-established banks and other businesses: As a result of its diversified product offering and clientele, it is able to cater to a wide range of industries. It has long-standing relationships with over 100 banks and well-established businesses, including STPI. It has been able to steadily increase the ageing of its customer relationships, with customers having a relationship of more than three years rising from 49.28% to 65.60%, and those with a relationship of more than five years increasing from 23.25% to 47.75% from Fiscal 2024 to Fiscal 2026. This reflects its ability to foster long-standing partnerships, driven by its diversified and end-to-end offerings that cater to evolving digital transformation needs.

AI-driven innovations and patented technology: The company holds commercial patents for its SWARAJ software, which intelligently identifies customer requirements and applies vertical and diagonal scaling technologies, which enable dynamic resource allocation for cost-effective and efficient cloud performance. It is engaged in the development and commercialisation of AI and ML driven systems for cloud environments. In November 2025, it launched a fully managed GPUaaS, allowing its customers across industries to create customised, high-performance AI environments, on a large scale, at global standards. These services empower developers and enterprises to build, train, and deploy AI models quickly for applications such as computer vision, natural language processing, and predictive analytics. In India, adoption of these platforms is accelerating as organisations aim to speed up innovation cycles without heavy capital investment in infrastructure. The market for cloud GPU in India was estimated at around $67.31 million in Fiscal 2025 and is projected to reach around $513.67 million by Fiscal 2030, reflecting a CAGR of around 50.15% over the period.

Risks and concerns

Loss or reduction in revenue from key clients could adversely impact business: A substantial portion of its operating revenue is derived from a top ten clients. The company’s top 10 customers contributed 45.36%, 49.34%, and 37.38% of its revenue from operations for Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Furthermore, its reliance on any individual client for a significant portion of its revenues may give that client a certain degree of leverage when negotiating pricing and the other terms and conditions of the agreement(s) between the company and that client. The loss of any of its top clients for Fiscal 2026, or a significant decrease in the revenue it receives from them, could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Significant portion of assets pledged in favour of lenders: A substantial portion of its assets are hypothecated or mortgaged in favour of lenders as security for some of its borrowings. As at March 31, 2026, 2025 and 2024, the total value of its hypothecated current assets as a percentage of its total current assets was 96.72%, 88.96% and 84.84%, respectively, and the total value of its mortgaged property, plant and equipment as a percentage of its total property, plant and equipment was 18.89%, 27.05% and 56.62%, respectively. Its lenders may enforce the security in the event of its failure to service its debt obligations, which could adversely affect its business, financial condition, results of operations and cash flows.

Reliance on government contracts and projects: The company has earned revenue from government and quasi-government clients and private sector clients that assist in the execution of government IT projects. Its revenue, directly or indirectly, from government entities and government projects represented 27.37%, 29.52%, and 34.04% of its revenue from operations for Fiscals 2026, 2025 and 2024, respectively. Any changes in government policies or budgetary allocations or its ability to satisfy eligibility and selection criteria in relation to outsourcing of services may adversely affect its business, financial condition, results of operations and cash flows.

Significant dependence on single UAE-based client: Its revenue from its top client in Fiscal 2026, a UAE company, represented 15.93% of its revenue from operations. The war between Israel and the United States on the one hand and Iran on the other has had a material adverse effect on the UAE’s economy. If the war was to continue, it could continue to have a material adverse effect on the UAE’s economy and thereby adversely affect the business, financial condition, results of operations and cash flows of its top client for Fiscal 2026. A material decreases in the revenue it earns from this client would have a material adverse effect on its business, financial condition, results of operations and cash flows.

Outlook

ESDS Software Solution is engaged in providing IT enabled services (Infrastructure as a service, software as a service and managed services) and supply of IT enabled products closely connected with the rendering of the IT enabled services. In addition to its standalone operations, the company conducts certain business activities through its subsidiaries, which support its domestic and international expansion strategy. On the concern side, it derived 43.88%, 56.36% and 49.59% of its revenue from operations for Fiscals 2026, 2025 and 2024, respectively, from Infrastructure as a Service (IaaS). If there is any decline in demand for IaaS or it is unable to maintain its existing market share in this sector, it could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The issue has been offering 1,76,47,058 shares in a price band of Rs 408-429 per equity share. The aggregate size of the offer is around Rs 720.00 crore to Rs 757.06 crore based on lower and upper price band respectively. Minimum application is to be made for 34 shares and in multiples thereon, thereafter. On performance front, its total income increased by 27.62% from Rs 3,766.41 million in Fiscal 2025 to Rs 4,806.52 million in Fiscal 2026. Its profit for the year increased by 117.26% from Rs 556.12 million in Fiscal 2025 to Rs 1,208.23 million in Fiscal 2026.

Meanwhile, it plans to increase such technical collaboration with third parties, including collaborations that allow it to offer complete digital transformation solutions to customers. Additionally, it aims to enhance its ecosystem by expanding its strategic alliances with companies with expertise in robotic process automation, business intelligence, AI/ML and the internet of thing. In addition, it is planning to open two new data centres: one in Kolkata, West Bengal, which it expects to be operational in the third quarter of Fiscal 2027; and one in Sahibabad, Uttar Pradesh, which it expects to be operational in the first quarter of Fiscal 2028.