SEBI Nods to ESDS, Shareholders Back OYO — Profitable Scale Is Driving India’s Next IPO Wave

India’s IPO market is shifting gears. After a prolonged slump in listings, a fresh wave of high-growth companies is lining up to access public capital not by narrative alone, but on foundational profitability and operational scale. Among the headlines, two names stand out for very different but equally instructive reasons: ESDS Software Share Price sentiment shaped by regulatory approval, and OYO Share Price Upcoming IPO speculation fueled by operational turnaround and shareholder backing.

SEBI Clears ESDS’s Path to the Public Markets

The most concrete signal of the renewed IPO momentum is the regulatory clearance granted to ESDS Software Solution Ltd. by the Securities and Exchange Board of India (SEBI) for its ₹600 crore initial public offering (IPO). This approval, confirmed in late 2025, sets the stage for one of the rare tech infrastructure IPOs in recent years and marks a key milestone after prior market-driven delays. 

ESDS is preparing a fully fresh issue meaning the company itself will receive 100% of the proceeds  that it plans to deploy into expanding cloud data centers and enhancing its service capabilities. There is no offer-for-sale (OFS) component, underlining management’s intention to use public capital for growth rather than shareholder exits. 

The purpose of proceeds: expanding cloud computing infrastructure and data centres, and enhancing hosted cloud solutions that the company calls “eNlight”, its proprietary, auto-scaling cloud platform. SEBI later approved the IPO and ESDS increased the issue size to ₹720 crore, a clear sign of institutional confidence and appetite.

Operationally, ESDS has turned heads. In FY25, the company delivered nearly 29% revenue growth alongside a multi-fold jump in profitability, underpinned by strong demand for cloud services across government, BFSI, and enterprise customers. Its net profit after tax surged sharply, underscoring a transition from scale to sustainable earnings growth ahead of the public debut. 

In the context of ESDS Software Upcoming IPO, this combination of regulatory green light and demonstrable financial momentum distinguishes it from a long list of private firms that file draft red herring prospectuses but then retract or delay due to adverse conditions. SEBI’s nod alongside other approvals granted recently to firms like Excelsoft Technologies confirms that India’s markets are once again fertile ground for well-capitalized offerings.

OYO’s Roller-Coaster IPO Journey and Renewed Momentum

In stark contrast to ESDS’s methodical march toward listing, the saga of OYO Share Price Upcoming IPO has been defined by persistence through multiple false starts, regulatory pushbacks, and broader market headwinds.

Since its first DRHP filing in 2021, OYO has been on an IPO odyssey. The first attempt aimed at an $8–9 billion valuation but was returned by SEBI due to concerns around key performance indicators, litigation exposure, and governance narratives. A subsequent refile in 2023 ultimately failed to culminate in a market debut as the company withdrew amid macro volatility and investor skepticism. 

Fast forward to late 2025, and OYO’s shareholders officially backed a fresh move toward public markets, including a bonus issue to strengthen equity structure ahead of listing a classic strategy to improve free float and investor appeal before a public offering. 

Most importantly, OYO’s financials have matured. Reports show the company not only returned to profitability but posted substantial net profits in FY25, supported by cost optimization, expansion of high-margin premium hotel inventory, and global market stabilization. OYO’s EBITDA run-rate, a key measure of core earnings power, has crossed significant thresholds, offering a grounding for a compelling IPO narrative.

 

In the unlisted space, Pre IPO Investment interest in OYO remains intense. Grey market platforms and private deal forums continue to reflect heightened activity for OYO shares, even as the share price remains subdued relative to historical highs. This divergence between unlisted valuation and anticipated public valuation underscores the speculative premium attached to IPO optionality and expected re-rating post-listing. 

In late 2025, shareholders of OYO’s parent company PRISM formally approved an IPO plan that could raise up to ₹6,650 crore through a fresh equity issue, giving the company flexibility to access public markets when conditions are favorable. Stakeholder approval including a proposed bonus issue ahead of listing reflects a strategic alignment between founders, institutions, and existing investors to capitalize on operational momentum. 

The renewed IPO attempt reportedly targeting a valuation range of $7–8 billion underscores a recalibrated market perception for OYO. It reflects OYO Share Price Upcoming IPO expectations now rooted less in aggressive expansion narratives and more in disciplined growth and profitability metrics, including multi-quarter positive EBITDA, improved cash flows, and strategic capital optimisation. 

How Profitability is Morphing IPO Readiness

Earlier cycles of Indian IPOs were dominated by high-growth but loss-making tech plays and aspirational listings that often failed to deliver sustainable returns post-listing. What’s different this time is the profitability pivot companies with earnings engines are leading the queue.

In the case of ESDS, this shift is visible in operating leverage and margin expansion ahead of the IPO. For OYO, improved unit economics in hotel operations, expanded premium revenue segments, and consecutive EBITDA positive quarters suggest that management has internalised the importance of earnings quality as a gating factor for listing readiness.

Market participants note that Indian public equity now increasingly favours companies with clear paths to durable cash flows, a phenomenon evident globally as markets punish superficial “growth at all costs” narratives.

Conclusion

India’s next IPO wave is being defined not by hype, but by scale, structural readiness, and profitability. With regulatory approvals accelerating and marquee names positioning themselves for public market entry, the primary market is entering a new chapter, one where financial discipline and strategic execution are non-negotiable prerequisites.

ESDS Software Upcoming IPO represents a tech-infrastructure story poised for public momentum. Meanwhile, OYO Share Price Upcoming IPO reflects the evolving intersection of legacy startup ambition and institutional capital scrutiny. Together, they signal that India’s IPO renaissance is anchored in sustainable value creation, not short-term sentiment.