The public issue of Happiest Mind Technologies seen a 1.65 times subscription on its first day, Monday. It received bids for 3.84 crore equity shares against IPO size of over 2.32 crore shares, as per the data available on exchanges.
The reserved portion of retail investors has subscribed 8.4 times and that of non-institutional investors 31.6%, while the portion set aside for qualified institutional investors has seen 8 percent subscription.
The Bengaluru-based IT company IPO consists of 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.
“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.
The company had 148 active customers as of Q1FY2021 with the share of repeat business growing consistently over the year to account for a significant portion of revenues indicating a high degree of customer stickiness, said Yash Gupta.
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