The initial public offering (IPO) of IT services firm Happiest Minds Technologies received an overwhelming response, subscribed 150.98 times on the last day of bidding last Wednesday.
The public issue of Happiest Minds, that gets almost 97% of its revenue from digital services, has joined the coveted club of most successful initial public offers (IPOs) since 2008 which crossed a subscription ratio of 100 times, ranking itself as the eighth biggest IPO of the last decade.
The portion reserved for non-institutional investors was subscribed 351.46 times, while the qualified institutional buyers' quota got a subscription of 77.42 times. The quota for retail investors was subscribed 70.94 times.
The allotment date for Happiest Minds IPO is scheduled today, while listing of the Bangalore-based IT service provider's equity shares on NSE and BSE is scheduled on September 23.
Here's how to check Happiest Minds IPO allotment status
- Go to the online portal of Link Intime India (linkintime.co.in). Select the company name as Happiest Minds in the drop-down menu of the investor's centre section.
- Enter your Permanent Account Numbers (PAN) or application number or Client ID.
- After entering the given captcha code, investors can click on submit and view their allotment status.
The offer comprised a fresh issue of shares aggregating up to Rs 110 crore and an offer for sale of up to 3.56 crore equity shares. The company's promoter Ashok Soota offered 8,414,223 equity shares and CMDB-ll (JP Morgan Asset Management) offered 27,249,362 scripts through the offer-for-sale route.
Government of Singapore Government, Goldman Sachs, Kuwait Investment Authority, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment were some of the anchor investors. The price band for the offer was fixed at Rs 165 to Rs 166 per equity share.
The Bengaluru-based company incorporated in 2011, plans to use the net proceeds from the fresh issue to meet long-term working capital requirement and general corporate purposes. ICICI Securities and Nomura Financial Advisory and Securities (India) were the managers for the offer.
"Happiest Minds' IPO has seen a very strong subscription aided by heavy demand from NIIs and retail investors. Considering factors such as a strong brand in digital IT services (96.9% of Revenue), high revenue-generating customer accounts, robust financial profitability growth, net-debt free status and minimal impact of Covid-19 pandemic, INDmoney remains positive on the prospects of the issue," INDmoney said in a report.
Abhimanyu Sofat, Head of Research at IIFL Securities said, "This is a unique business since 97% of the business is digital as most other similar listed firms are still largely dependent on legacy business. We are quite positive on the future outlook of Happiest Minds considering it trades at a discount to eastern European peers who have a similar profile. Pedigree of Mr. Ashok Soota gives additional strength to the issue."
Vinod Nair, Head of Research at Geojit Financial Services said, "On the financial front FY18-20 revenue growth stood at 23% on a CAGR basis while profit witnessed a steady growth from Rs 14 crore in FY19 to Rs 72 crore in FY20 due to increase in sales, lower operating expenses and 50% reduction in interest cost in FY20."