IT services firm Happiest Minds Technologies debuted on the stock exchanges with a strong listing of 111 percent at Rs 351 on the BSE, over its issue price of Rs 166. At 3:30 pm, the shares ended 6 percent higher to Rs 371 apiece, which is about 124 percent higher than the issue price.
The stock has left the big listings of DMart and IRCTC behind, as both delivered a little over 100 percent premium on their respective debuts. Back in 2017, Avenue Supermarts was listed with 102 percent premium while IRCTC last year witnessed a 101 percent premium, over their issue prices.
The Rs 702-crore initial public offering of Happiest Minds Technologies, promoted by Ashok Soota, garnered massive response from investors as it was subscribed a whopping 151 times. The price band for the offer, which closed for subscription on last Wednesday, was fixed at Rs 165-166 per equity share.
Soota was also the founding chairman and managing director of MindTree Ltd. Prior to this, he was the vice-chairman of Wipro Ltd.
The company proposed to utilize the net proceeds from the fresh issue to meet long term working capital requirements and general corporate purposes.
“At upper price band it is offered at 23.6x FY2020 EPS. 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 the peer group. We would therefore recommend investors to Subscribe to the IPO,” said Yash Gupta, Equity Research Associate, Angel Broking.
Happiest Minds Technologies' total income for the year ended March 2020 stood at Rs 714.2 crore and has over 2,600 employees.
First Published: IST