The Rs 702-crore first public offering of Happiest Minds Technologies has gotten stellar response from all investors. The issue has subscribed 150.98 times so far on September 9, the last day of offering.
The public issue has got offers for more than 351 crore equity shares against offer size of over 2.3 crore equity shares, the information accessible on trades appeared.
The portion put in a safe spot for retail investors has subscribed 70.94 times, while the reserved portion of non-institutional investors saw 351.4 times subscription and that of qualified institutional purchasers 77.42 times.
The IPO contains a new issue of Rs 110 crore and a proposal available to be purchased of 3,56,63,585 value shares by promoter Ashok Soota and JP Morgan-upheld private equity fund CMDB II.
The price band of the issue has been fixed at Rs 165-166 for every share and the greatest offers have been gotten, up until this point, at higher end of price band. Indeed, even grapple investors contributed at Rs 166 for every share.
“At upper price band, it is offered at 23.6x FY2020 EPS, demanding market cap of Rs 2,438 crore, which is at a slight premium to few of the smaller sized IT companies. Considering the very high exposure to digital services and strong promoter background, we expect that the company will continue to grow at a faster pace as compared to similar sized companies and therefore should command a premium valuation to peer group. We would therefore recommend investors to subscribe to the IPO,” Angel Broking said.
Happiest Minds is a small sized IT services organization advanced by Ashok Soota who was one of the establishing individuals from Mindtree.
The organization is remarkably situated as inferred 96.6 percent of its revenues in FY20 from digital services that are required to be the fastest developing segment in the IT sector, said Angel Broking.
The organization has been situated as ‘Born Digital. Born Agile’ and spotlights on delivering a seamless digital experience to its clients. The organization’s contributions incorporate digital business, product engineering, infrastructure management and security services among others.
Motilal Oswal likewise loves the organization given its (1) in number presence in digital services, (2) scalable business model with end-to-end capabilities and (3) fast improving financial performance. Thus, investors can subscribe to the IPO, the brokerage advised.