ESDS Software stock: CMD Piyush Somany decodes the 263% rally in five days 

ESDS Software stock price rally: Shares of ESDS Software Ltd, a cloud infrastructure managed security and software technology solutions provider, are buzzing on Dalal Street since their listing on September 4 last week. The AI stock has delivered 263% returns or risen nearly four times the IPO price of Rs 429 during the period. The stock surged to high of Rs 1560.35 in the current session, rising 10% against the previous close of Rs 1418.50.

On listing day too, it made a stellar market debut, rising 76% to Rs 757 on NSE over the issue price of Rs 429. The stellar rally in five sessions has brought the stock into spotlight.

BTTV spoke to chairman and managing director (CMD) of ESDS Software Solution Limited Piyush Somani on the stellar stock rally and a host of other issues.

Decoding the bull run in the stock, Somani told BTTV that AI infra will become a long story from here onwards, and it's just coming to birth right now in India.

"So, it is just born a year back in India. So it's a massive, massive AI frenzy right now. No data centers are available in either America or anywhere in Southeast Asia. In Europe, whatever 10, 12 gigawatts of capacity they had in the last three years is all gone now. AI factories is the new thing that is going to happen," said Somani.

Of all other infra business models, AI infra will be much larger than all of those infra plays, he added.

Replying to a query on the company's plan in terms of physical expansion of these AI centres, Somani said the company is expanding in Bangalore.

"In the current location where we are, we have taken three more floors in the same building. These floors are getting converted into data center capacity for AI infra. And then in Mumbai and Nashik, the company is expanding, the CMD said.
 
Somani also revealed that a large 20 MW AI factory is coming up in Sahibabad. In Kolkata too, a factor will start operations

"In the next 40-50 days, our Sydney data center and the AI factory will go live. The AI factory in Sydney is expected to go live by the end of October next month," said Somani.

The company has units in Tier 2 and Tier 3 cities such as Nashik, Mumbai, Bengaluru, Mohali and Noida.