Home >Markets >Ipo >Happiest Minds’ IPO to open on 7 September, bets on digital business

Bengaluru-based IT services company Happiest Minds Technologies Ltd on Wednesday said it will launch its initial public offer (IPO) on 7 September. The offer will close on 9 September and the company has fixed the price band at 165-166 per equity share.

The offer comprises of fresh issue of 110 crore and an offer for sale aggregating up to 3.56 crore equity shares, which includes 84 lakh equity shares held by promoter and executive chairman Ashok Soota and 2.72 crore equity shares by private equity fund CMDB II.

Bids for the IPO can be made for a minimum of 90 equity shares and in multiples of 90 equity shares thereafter. The face value of the equity shares is 2 each.

As much as 97% of the company’s revenue comes from digital, which is much higher than peers Infosys Ltd, Cognizant, and Mindtree Ltd, where the average contribution from digital stands at 40-50%. “Digital is growing much faster than traditional business," Soota said in a virtual media briefing.

Happiest Minds is well positioned to overcome the challenges due to the covid-19 pandemic as 76% of its business has not been impacted, Soota said. The company’s presence in verticals such as travel and hospitality, which has been hit severely by the pandemic, is limited.

The IT firm has high exposure to “edutech" and “high tech" verticals which have grown during the pandemic, Soota said.

The company’s revenues for FY20 stood at 714.2 crore growing at a CAGR of 20.8% between FY18-20. The revenues for the first quarter ended March stood at 187 crore.

ICICI Securities Limited and Nomura Financial Advisory and Securities (India) Private Ltd are the book running lead managers to the offer while KFin Technologies is the registrar to the public issue.

An industry veteran, Soota was the president of Wipro's technology business from 1984-99 and led it to becoming one of the leading IT services companies in India. He later cofounded mid-sized IT services company Mindtree Ltd in 1999 and went on to launch its IPO in 2007 that was subscribed 103 times.

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