Happiest Minds Technologies shares witnessed a stellar debut on Thursday as the scrip was placed on BSE at Rs 351, a premium of 111 percent over its issue price of Rs 166. With this, the stock beat the likes of IRCTC and DMart’s, which in recent years have produced just over 100 % return on their debuts.
The stock was listed at Rs 350 on the NSE, up 110.84 percent
The IPO, which was sold in the price band of Rs 165-166 from September 7 to September 9, was subscribed 151 times. In the last five years, there are only four problems that have seen higher subscription levels than Happiest Minds: Capacit’e Infraprojects (183 times), CDSL (170.1 times), Ujjivan Small Finance Bank NSE -0.15 % (165.60 times), and Amber Enterprises (165.3 times).
At the issue price, the stock was held to be priced at 26.76 times FY20 per share earnings.
Data showed the stock was in pre-open trades ruling at a premium of Rs 146 at Rs 406.65. The stock was enjoying a healthy premium of Rs 155-158 on the grey market.
The digital IT services provider based in Bengaluru saw the portion of eligible institutional buyers (QIB) earn 77 times the subscription while the quotas of non-institutional investors (NII) or high net worth investors were subscribed 351 times.
The quota of retail investors, which was completely subscribed in less than two hours on the first day of the tendering phase, was subscribed 71 times. Retail bids were received for 3.51 billion shares, valued at Rs 58,300 crore, compared with 23.2 million on offer.
In the past, there have been at least 20 issues, which have seen over 100 times the investor subscription. At their secondary market debuts, these issues reported an average 70 percent listing gains, data showed.
Happiest Minds raised Rs 702 crore during September 7-9, via its public question.
Through the agile delivery approach, the IT business gained 97 per cent of its revenue from digital offers in FY20 and about 88 per cent of projects. It has 148 active customers, 36 of whom are Fortune 200 enterprises.
The company generates revenue from three business units-Digital Business Services, Product Engineering Services, and Infrastructure Management & Security Services, which contributed 26 per cent, 53 per cent, and 21 per cent to revenue posted in June quarter 2020.
The company’s promoter is Ashok Soota, the executive chairman and managing director. Soota was Mindtree ‘s founding chairman and MD and was also Wipro Ltd’s vice-chairman.
It is interesting to see, how a relatively unknown name from the IT industry has became overnight sensation with a huge IPO which shows that how much IPO industry is alive still.