ESDS Software Shares Hit 5% Lower Circuit After Sharp Post-Listing Run

ESDS Software Solution shares were locked at their 5% lower circuit on Wednesday, September 16, as investors booked profits following a steep run since the company’s stock market debut earlier this month. 

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The stock was trading at ₹1,733.50 on the NSE, down 5% from its previous close. That was also the lowest price permitted for the shares during the session under the prevailing circuit limit. 

The fall comes after several sessions of strong gains for the newly listed company. Even after Wednesday’s decline, ESDS shares remained substantially above the level at which they began trading on the exchange. 

Stock remains 129% above NSE listing price 

ESDS Software Solution made its NSE debut at ₹757 per share, a 76.46% premium to its IPO price. 

At Wednesday’s lower-circuit price of ₹1,733.50, the stock was still 129.07% higher than its ₹757 listing price. 

The company’s ₹720-crore initial public offering was priced in a band of ₹408 to ₹429 per share. 

ESDS shares had repeatedly hit upper circuits in the sessions following their listing. The sharp movement in the stock also led to changes in its permissible daily trading range. 

The circuit limit, which had earlier stood at 20%, was subsequently reduced to 10%. It has now been brought down further to 5%. 

Profit booking follows string of upper circuits 

Wednesday’s move marked a reversal from the pattern seen in the stock during the previous several trading sessions, when ESDS shares repeatedly reached their upper circuit limits. 

With the circuit band now set at 5%, the stock reached the opposite end of that range during Wednesday’s trade, falling to ₹1,733.50. 

Despite the latest decline, the gap between the company’s listing price and its current market price remains sizeable, reflecting the sharp appreciation recorded in the short period since its debut. 

ESDS Software Solution operates across AI-enabled cloud services, managed services, data-centre infrastructure and software solutions. 

The September 16 session, however, saw profit booking interrupt the stock’s strong post-listing run, with the shares ending up at the 5% lower circuit during the period covered by the report.