IT consulting and software firm Happiest Minds Technologies will initiate the process of entering the bourses on Monday as its Initial Public Offering (IPO) opens for subscription. The Rs 700 crore issue will be accompanied by an offer for sale for 35.66 million shares and a fresh issue of Rs 6.6 million shares. Happiest Minds will be the first IPO to be up for subscription after Rossari Biotech, which saw a resounding response from investors, taking the share price up almost 100% from the issue price so far. The IPO market has been largely deserted so far this fiscal as the global pandemic wreaked havoc across the world.
Ahead of the issue, market participants believe that Happiest Minds’ valuation and fundamentals make it a good bet for listing day gains. “The price of Happiest Minds has been in the range of Rs 108-130 (per share) since the announcement of the IPO,” said Divam Sharma, Co-founder at Green Portfolio a SEBI Registered Portfolio Management Services company, as he discussed the grey market performance of Happiest Minds.
Here’s all you need to know about Happiest Minds Technologies IPO:
Issue Size and price band – The IT Consulting and Software company has fixed the price band for the IPO at Rs 165-166 per share. The issue includes an OFS taking the total issue size up to 42.2 million shares. Happiest Minds could manage to raise Rs 101 crore from the issue as the proceeds from the OFS will not be going to the firm.
Lot size: The lot size has been decided to be 90 shares. This takes the application Rs 14,940 per lot at the upper band of the issue price.
Objective of the issue: Of the net proceeds from the fresh issue, Happiest Minds will be using the Rs 101 crore to meet long term working capital by the company. Rest of the amount will be utilized for general corporate purposes.
Bidding date: The issue will open on September 7 for subscription and will close on September 9. Giving investors 3 days to subscribe to the issue.
Shareholding pattern: Post the IPO, promoter shareholding will drop from 61.77% to 53.25%. Public shareholding will jump to 42.86% from the current 34.16%.