ESDS Software Solution Shares Hit 5% Lower Circuit

ESDS Software Solution fell 5% to hit the lower circuit for the sixth consecutive trading session on Monday, extending a sharp correction that has erased nearly 30% of the stock’s value over the period. The decline coincided with the end of the one-month shareholder lock-in. According to Nuvama Alternative & Quantitative Research, roughly 2.5 million shares—about 2.5% of the company’s outstanding equity—became eligible for trading. Analysts note that eligibility does not automatically trigger sales, but the increased free float added to selling pressure. ESDS, a provider of AI-enabled cloud, managed services and data-centre infrastructure, listed on September 4 at a 76% premium to its issue price of ₹429 per share. The stock had more than doubled from the IPO price in the weeks after listing, briefly making it one of 2026’s strongest debuts. Profit booking and weaker sequential first-quarter results, which showed revenue and profit declining from the previous quarter, have since cooled investor enthusiasm.