Happiest Minds IPO subscribed 150 times so far: Key things to know2 min read . Updated: 09 Sep 2020, 04:09 PM IST
- The price band of the Happiest Minds offer has been fixed at ₹165 to ₹166 per equity share
- Happiest Minds Technologies has raised ₹316 crore from anchor investors ahead of the IPO.
The IPO of Happiest Minds Technologies, which has drawn strong response from investors, was 77.51 times subscribed as of 4 pm today. Happiest Minds IPO opened on Monday and will close today. Happiest Minds Technologies has raised ₹316 crore from anchor investors ahead of the IPO.
The price band of the offer has been fixed at ₹165 to ₹166 per equity share. The offer comprises a fresh issuance of shares aggregating up to ₹110 crore and an offer for sale of up to 3.56 crore equity shares.
KFin Technologies Private Limited is the registrar of the Happiest Minds IPO. ICICI Securities and Nomura Financial Advisory and Securities (India) are the managers for the offer.
Likely Listing Date and Lot Size
Happiest Minds shares are likely to get listed on September 17, 2020, according to brokerages. The minimum lot size is 90, which means investors have to apply for a minimum of 90 shares and in multiples thereafter.
Happiest Minds Technologies shares are proposed to be listed on the BSE and the NSE.
Happiest Minds, incorporated in 2011, is a Bangalore based IT service provider, drawing most of the income from the digital space. As of June 30, 2020, Happiest Minds had 148 active customers and presence in countries like US, UK, Australia, Canada and the Middle East.
In FY20, the company had reported revenues of ₹714 crore - growing at a CAGR of 20.8% between FY18 and FY20. It has over 2,600 employees. In FY20, it had reported profit of ₹72 crore.
Many analysts have recommended subscribe to the IPO.
Domestic brokerage Geojit Financial Services has recommended a subscribe to Happiest Mind IPO.
"At the upper price band of Rs.166, Happiest Minds is available at P/E of 34x FY20 which is at a premium when compared to its large and midcap peers. However, post annualizing Q1FY21 numbers we arrive at a P/E of 12xFY21 which seems attractive. With strong management pedigree and growth potential in a post Covid-19 scenario, we recommend ‘SUBSCRIBE’ rating for this IPO with a long-term perspective," the brokerage said.
Another brokerage Motilal Oswal also likes the issue. "We like the company given its (1) strong presence in digital services, (2) scalable business model with end-to-end capabilities and (3) fast improving financial performance. Hence, investors can Subscribe to the IPO. Further considering market conditions and bright prospects for IT companies post Covid-era, one may also get listing gains," it said.