Happiest Minds raises investments through anchor investors ahead of IPO

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The IT consulting firm, Happiest Minds Technologies has raised Rs 316 crore from anchor investors, ahead of its initial public offering that opens on Monday. The anchor investors include Government of Singapore, Kuwait Investment Authority, Goldman Sachs, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment. Happiest Minds in a statement issued last Saturday said that the total of 25 anchor investors have been allotted 1,90,30,541 equity shares at the upper price band of Rs 166 per scrip. For this price, the company mopped up at Rs 315.9 crore.

The IPO will open for subscription on September 7 and close on September 9. The price band of the offer has been fixed at Rs 165 to Rs 166 per equity share. The offer involves a new issuance of shares aggregating up to Rs 110 crore and an offer for sale of up to 3.56 crore equity shares. Ashok Soota, the company’s promoter will offer 8,414,223 equity shares and CMDB-ll (JP Morgan AssetManagement) will offer 27,249,362 scrips through the offer-for-sale route. In the upper end of the price band, the IPO will fetch at Rs 702 crore.

The company sees global players such as EPAM, Endava and Globant as its competitors. Technical innovation helps the company to perform well in the key competition. The digital firm has 157 active customers and derives about 77.5 per cent of its revenue from the US and 11.9 per cent from India. It had an employee base of 2,600 as of June 30.

The IT Company proposes to use the net proceeds from the fresh issue to meet the long-term working capital requirement and general corporate purposes. It is proposed that the Bengaluru-based company’s shares be listed on the BSE and the NSE. The managers for the offer involve ICICI Securities and Nomura Financial Advisory and Securities (India). The company, which filed draft papers with the markets watchdog SEBI in June, had obtained its approval to float IPO in August.

The market participants believe that Happiest Minds’ valuation and fundamentals make it an effective bet for listing day gains. Divam Sharma, the Co-founder at Green Portfolio a SEBI Registered Portfolio Management Services company said that the price of Happiest Minds has been in the range of Rs 108-130 (per share) since the announcement of the IPO.

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