India: Happiest Minds’ IPO opens  to  good  response

IPO

The initial public offering (IPO) of Happiest Minds Technologies Ltd opened to a robust response on Monday with bids for nearly three times the number of shares on offer.

The share sale received bids for 66.7 million shares against an IPO size of around 23.2 million shares, excluding the anchor book, showed data available on stock exchanges. The share sale closes on Wednesday. The retail portion witnessed exuberance and was subscribed 14.61 times, while the portion reserved for non-institutional investors and qualified institutional investors were subscribed 62% and 8%, respectively.

Happiest Minds, which is selling shares in the price band of 165-166, aims to raise 702 crore through the IPO.

Proceeds of the issue will be used to meet long-term working capital requirements and for general corporate purposes.

Bengaluru-based Happiest Minds is promoted by IT entrepreneur Ashok Soota.

On Friday, the company raised 316 crore through anchor investors, including the Singapore government, Goldman Sachs, Kuwait Investment Authority, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment.

Motilal Oswal Financial Services said the issue is expected to offer listing gains considering the market conditions and bright prospects for IT companies in a post covid-era.

“At the higher end of the price band, the issue is valued at 29 times the FY2020 price to earnings, which is comparable to larger mid-sized IT companies,” it said.

A strong presence in digital services, scalable business model with end-to-end capabilities and fast-improving financial performance are a few factors for investors favouring the company, Motilal Oswal analysts said.

“At the upper price band of 166, it is available at price to earnings of 34 times FY20, which is at a premium when compared to its large and midcap peers. However, post annualizing Q1FY21 numbers, we arrive at a PE of 12 times FY21 which seems attractive,” said Geojit Financial Services Limited.

With strong management pedigree and growth potential in a post covid-19 scenario, the brokerage firm sees potential in Happiest Minds Technologies.

The article was first published on livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.