Spreading cheer: Happiest Minds’ initial float subscribed 150 times

Our Bureau Mumbai | Updated on September 09, 2020

Ashok Soota   -  BUSINESS LINE

The digital company, seeking to raise ₹702 crore, receives bids for ₹105-lakh crore

Another tech company IPO has caught the fancy of retail investors. The share offer of Bengaluru-headquartered digital company, Happiest Minds Technologies, was subscribed by 150 times till around 6 pm on Wednesday.

The company, which was seeking to raise ₹702 crore through its initial public offer (IPO), has received bids for ₹105-lakh crore. Anchor investors had put in around ₹ 316 crore last week.

Happiest Minds is among the top 10 most-subscribed IPOs in around three years. Dmart (104 times), CDSL (170 times), Salasar Techno (277 times), Captiate Infra (183 times) and Aston Paper (243 times) were the initial offers that got tremendous investor response in 2017. In 2018, the highest-subscribed IPOs included Apollo Micro Systems (248 times) and Amber Enterprises (165 times). The IRCTC offer in 2019 was subscribed 112 times and Ujjivan Small Finance 165 times.

Happiest Minds is the second company founded by Ashok Soota, the former vice-chairman of Wipro. Soota first set up Mindtree in 1999, which went public in 2017, and the initial offer got subscribed 103 times. The company has revenues of more than $1 billion now.

“Market is liking the fact that the company has 95 per cent of its revenues coming from digital business. Even for larger IT companies the revenue mix shows their digital business share is far less. Happiest Minds could be a smaller company compared to large IT players, but markets are looking at long-standing expertise of Soota in the business for the company to do well,” said Sudip Bandyopadhyay, Group Chairman, Inditrade Capital.

The offer consists of a fresh issue of ₹ 110 crore, and an offer-for-sale of 3,56,63,585 equity shares by Soota and private equity fund CMDB II. At ₹166 per share, the fiirm s seeking a valuation of 26.76 times financial year 2020 earnings per share.

Suyog Kulkarni, Senior Research Analyst, Reliance Securities, said, “Happiest Minds gets 65 per cent of revenues from less Covid- affected verticals such as edutech.”

Published on September 09, 2020

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