Happiest Mind is a small IT services company promoted by Ashok Soota.
The Bengaluru-based IT company launched its public issue of Rs 702 crore on Monday and it will close on 9 September.
- News18.com
- Last update: September 7, 2020 7:33 PM IST
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On the first day of the bidding, Happiest Minds Technologies IPO is getting a good response from retail investors thus far.
The public issue has been subscribed 2.86 times so far, as it has received capital stock offers of Rs 6.67 crore versus the IPO size of over 2.32 million shares (excluding the anchor book), according to the data available in the exchanges.
The part reserved for retail investors has subscribed 14.61 times and that of non-institutional investors 61.3%, while the part reserved for qualified institutional investors has had a subscription of 8%.
The Bengaluru-based IT company launched its public issue of Rs 702 crore on Monday and it will close on 9 September. The company already raised Rs 316 crore through the anchor investor book on September 4.
The issue consists of a new issue of Rs 110 crore and an offer to sell of 3,56,63,585 equity shares by promoter Ashok Soota and the private equity fund CMDB II backed by JP Morgan.
The issue price band has been set at Rs 165-166 per share. “In the upper price band, it is offered at 23.6x FY2020 EPS. Considering the very high exposure to digital services and strong developer experience, we expect the company to continue to grow at a faster rate compared to companies similar in size and therefore should have a premium valuation for the peer group. Therefore, we recommend investors to sign up for the IPO, “said Yash Gupta, Equity Research Associate at Angel Broking.
Happiest Mind is a small IT services company promoted by Ashok Soota, who is also the CEO and director of the company. Prior to founding Happiest Mind in 2011, Soota was one of the founding members of MindTree before which he was also Vice President of Wipro.
The company has a strong presence in digital technologies to drive the growth of the company. In fiscal 2020, 96.9 percent of the company’s revenue came from digital services and it ranks among the top IT companies in India.
The company is divided into three business units: digital business processing, product engineering services, and security and infrastructure management services.
The company had 148 active clients as of Q1FY2021 and the share of repeat business grew steadily throughout the year to account for a significant portion of revenue, indicating a high degree of customer adherence, Yash Gupta said.
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