Happiest Minds Technologies IPO Subscribed 2.86 times, Retail Book 14.6 Times on Day 1

The reserved portion of retail investors has subscribed 14.61 times and that of non-institutional investors 61.3 per cent, while the portion set aside for qualified institutional investors has seen 8 per cent subscription.

The Bengaluru-based IT company launched its Rs 702-crore public issue on Monday and the same will close on September 9. The company already raised Rs 316 crore through anchor investors’ book on September 4.

The issue consists a fresh issue of Rs 110 crore and an offer for sale of 3,56,63,585 equity shares by promoter Ashok Soota and investor JP Morgan-backed private equity fund CMDB II.

The issue price band has been fixed at Rs 165-166 per share. “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 at Angel Broking.