Right from the start, this year made us feel like we are in the middle of a terrifying movie, particularly when it comes to the markets. And no one seems to come up with an answer as to when all this would reach the most awaited climax. Amidst all this, a few events still have managed to keep the market on the edge of its seats. One such event is the upcoming IPO of a tech company. The market is all set to see Happiest minds being added to the watchlist.
The Happiest minds IPO will be opened for subscription on Sept 7 onwards. While the duration lasts till Sept 9, it is essential that you get a heads up on the various factors and information pertaining to the issue. So let's quit wasting time and jump into the details of it,
Happiest Minds Technologies – A brief history
Happiest minds technologies started its story in August 2011 and is headed by Ashok Soota. To be honest, the name "Ashok Soota" itself seems to drive the entire IPO in a positive line. This is mainly because of the impressive career path he had crossed in his lifetime. In short, having a strong captain and experienced crewman to navigate the ship has put the company on maps.
Ashok Soota, 77 years old, was in the control room of Wipro Infotech. He led the company in the path of success and triumph, taking it from $2 million to a mind-blowing $500 million during his tenure of service. Later, he also co-founded Mind tree. Leaving the company, for which the reasons are quite unclear, he went on to start Happiest minds. It is a firm specialized in the IT sector and is based in Bengaluru. He has seen the ups and downs and recessions and dot-cum bubble. And all this prompted people to view the company led by him as an idle investment venture.
Happiest Mind IPO: A unique one of the lot
The business ultimately focuses on the digital segment, which is expected to grow promptly, about 20-30% in the next few years. In fact, the company has already got an estimated 97% of its revenue coming from the digital projects undertaken. That is, Happiest minds have placed all it's business prospects on a train that is destined towards growth and success. Moreover, the company is placed comfortably on the pillars of Artificial intelligence, Digital process automation, and the Internet of things.
What happens to be the cherry on the cake is the management structure. Unlike the rest of the lot, the company is headed by an executive board, which ultimately takes the place of the single CEO. Happiest minds technologies have been performing quite well since its establishment with a customer base of 148.
So far, the company looks like a perfect fit for a future money bagger. But what about the numbers? The financials of Happiest Minds technologies? Do they translate the same?
The company's financials have also projected a constant upward curve pointing towards growth. As of the financial year 2020, the company's revenue stood at 714 crores. However, the company hasn't been profitable in the last three years. Thus, you will be seeing 10% being open to major retail investors following SEBI guidelines. To top that, Happiest minds also has a good amount of its customer base dominated by clients based outside India, mostly in the USA. This contributes to about 3/4th of the revenue. Hence, like its peers, the company is also exposed to currency risk.
Having said that, Happiest minds technologies have sailed pretty well amid the COVID tide, and this is a point to be noted. While a large number of companies struggled to save their boats, the company used this time to pick up the next possible growth avenues and took to investing in new-age technologies. The company has also bagged a lot of deals during this pandemic beating the close competition by huge enterprises.
The Happiest Minds IPO Details
Coming in the middle of the pandemic, the company is quite positive about the subscription. An estimated 702 crores are expected to be raised through the Happiest minds IPO. The company will be using this for their working capital purposes. The IPO will consist of 110 crores, which will be a fresh issue, and about 35,663,585 shares summing to 592.01 crores will come in the form of an offer for sale (OFS). And the rest will be held by promoters and major investors, including founder Ashok Soota and CMDB II.
The investors hoping to pitch in can do so while keeping in mind the minimum constraints. A bid can be placed for a minimum of 90 shares and in multiples of 90 equity shares. The shares will have a face value of Rs. 2. The Happiest minds IPO has got ICICI securities, Kevin technologies, and Normal Financial Advisory and Securities on board to guide its IPO and help with the process.
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There is already enough optimism in the market about its subscription, and predictions about its over-subscriptions are also reaching new numbers. On the one hand, this is a result of fair pricing and limited issue of its shares. On the other hand, it might be a result of the good climate prevailing around the future of digital technology. Apart from that, a lot of investors are happy to see a tech-based IPO taking place after a time span of more than 4 years. Further, a well-built business structure focused on a prospective avenue backed by experienced management happens to make it an attractive investment. So what is going to be your call?