Happiest Minds Technologies makes stock market debut at Rs 383 apiece, up 131% from issue price

The Rs 700 crore IPO of Happiest Minds noticed buyers bid for 351 crore shares in opposition to the issue dimension of two.32 crore.

Happiest Minds applied sciences shares made their stock market debut as we speak at a price of Rs 383 per share, a premium of Rs 217 on the higher band of the issue price of Rs 165-66 per share. The stock started buying and selling 131% increased from the issue price . Happiest Minds Technologies IPO was subscribed 151 occasions with all parts being oversubscribed by the buyers. Non-Institutional Investors (NII) had bid essentially the most for the stock. The Bengaluru primarily based Information Technology firm, backed by 77-year previous entrepreneur Ashok Soota, was commanding a gray market premium of Rs 140 per share until yesterday. 

The Rs 700 crore IPO of Happiest Minds noticed buyers bid for 351 crore shares in opposition to the issue dimension of two.32 crore. At the tip of the three day bidding course of retail buyers subscribed their portion 70.94 occasions whereas Qualified Institutional buyers (QIB) subscribed their portion 77.42 occasions. The largest rush for funding got here from Non-Institutional buyers, who bid for the issue 351 occasions. For the Anchor Book portion of the issue, distinguished buyers like GIC, Baillie Gifford, Goldman Sachs, Franklin Templeton, Fidelity, Birla MF, ICICI Prudential MF, SBI Life, HDFC Life, and Nippon MF participated.

Speaking forward of the itemizing, Happiest Minds Executive Director Ashok Soota mentioned, “Digital market is growing much faster which has enabled Happiest Minds Technologies to grow at a CAGR of 20% compared to the industry average of 8-10%.” Happiest Minds Technologies derives 97% of its revenues from Digital IT companies by providing companies like cloud, SaaS, safety, analytics and IoT, in comparison with 30-50% for conventional Indian IT companies friends.

Analysts say, shares from the IT area might witness optimistic momentum within the post-coronavirus world companies throughout the globe decide in for a extra digital oriented development which interprets to extra enterprise for such corporations.  “Considering FY20 adjusted EPS of Rs 6.2, the price band implies a P/E ratio of 26.6X, comparable to its larger mid-cap peers such as LTI, Mindtree and NIIT Tech. Based on management comments, the implied P/E multiple for Happiest Minds is ~12X if we annualize 1QFY21 EPS,” mentioned IIFL Securities in a observe. 

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