Happiest Minds Technologies’ maiden initial public offering (IPO) saw a subscription of nearly 151 times, generating bids worth more than Rs 58,000 crore—making it one of the most subscribed IPO in recent times.
The retail investor portion of the issue garnered 71 times the subscription, with over 2 million applications. The wealthy investor portion saw over 351 times the demand for shares on offer, while the institutional portion saw 77 times subscription.
Experts said the huge demand boosts prospects for the IPO market, which has been in a moribund state with only two offerings hitting the market this year.
Through the IPO, Happiest Minds was looking to raise Rs 110 crore in fresh capital. The issue also comprises secondary share sale worth Rs 590 crore.
ALSO READ: Happiest Minds IPO subscribed more than 8 times on day before close
At the top end, the company is valued at Rs 2,440 crore on a post-dilution basis. Happiest Minds is promoted by Ashok Soota, the founding chairman of MindTree. The firm is into digital IT services, with offerings such as cloud, SaaS, security, and analytics.
Most brokerages had recommended their clients to subscribe to the IPO.
“At the higher end of the price band, the issue is valued at 29 times FY20 P/E (fully diluted), which is comparable to larger mid-sized IT companies. We like the company given its strong presence in digital services; scalable business model with end-to-end capabilities and fast improving financial performance,” a note by Motilal Oswal said.
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