Happiest Minds Technologies’ inaugural initial public offering (IPO) saw a subscription of nearly 151 times, generating offers worth more than Rs 58 billion, making it one of the most underwritten IPOs in recent times.
The retail investor portion of the issue was subscribed 71 times, with over 2 million requests. The wealthy investor portion saw more than 351 times the demand for shares on offer, while the institutional portion saw 77 times the subscription.
Experts said the huge demand boosts the outlook for the IPO market, which has been in a moribund state with only two offerings hitting the market this year.
Through the IPO, Happiest Minds was seeking to raise Rs 110 million in fresh capital. The issue also includes the sale of secondary shares worth Rs 590 million.
ALSO READ: Happiest Minds IPO was subscribed more than 8 times the day before closing
At the higher end, the company is valued at Rs 2,440 crore after dilution. Happiest Minds is promoted by Ashok Soota, the founding president of MindTree. The firm is dedicated to digital IT services, with offerings such as cloud, SaaS, security and analytics.
Most of the brokerages had recommended their clients to subscribe to the IPO.
“At the upper end of the price band, the issuance is valued at 29 times FY20 P / E (fully diluted), which is comparable to larger mid-size IT companies. We like the company given its strong presence in digital services; scalable business model with end-to-end capabilities and rapid improvement in financial performance, ”said Motilal Oswal.
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