At 10.15 am, the issue received offers for 7,42,16,790 shares, which was 3.19 times the size of the issue of 2,32,59,550 shares. The issue had received offers for 6,67,09,800 shares through Day 1, which was 2.87 times the size of the issue.
The digital company, whose issue is sold in the Rs 165-166 price band, raised Rs 316 crore on Friday from 25 anchor investors, including the Government of Singapore, Goldman Sachs, Kuwait Investment Authority, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment. In the upper price band, the issue seeks a valuation of 26.76 times earnings per share for fiscal year 20.
Angel Broking said that given the high exposure to digital services and strong developer training, the company will continue to grow at a faster pace compared to similarly sized companies and therefore should rank higher for the group of pairs.
Choice Broking said the item appears to be priced overall compared to its domestic peers. But he noted that the company cannot be completely comparable to its national IT peers. “There are international peers, which get almost all their income from digital services, trading at a P / E multiple that ranges between 67 and 139 times. Assuming that the valuations of these companies in the US markets are foamy, the valuation required by Happiest. Minds seem to be attractive, “she said.
Motilal Oswal Securities said the company’s valuations are comparable to those of larger mid-size IT companies. He likes the company given its strong presence in digital services, business model with end-to-end capabilities, and rapid improvement in financial performance.
“Investors can subscribe to the IPO. Also considering market conditions and the bright prospects for IT companies post-Covid era, trading gains can also be made,” the brokerage said.
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