Incorporated in 2011, Positioned as "Born Digital. Born Agile" Happiest Minds Ltd is a Bangalore based IT service provider company. The business of the company is divided into three categories; Digital Business Service (DBS), Product Engineering Service (PES) and Infrastructure and Management Security Service ( IMSS).
The DBS unit offers digital application development & modernization, assistance in designing & testing of operations, management of the platform, consulting and domain led offerings.
PES unit helps by transforming the potential of digital by making the product secure and smart. Wherein, IMSS provides an end to end monitoring and management capability for applications and infrastructure of the clients.
As of June 30, 2020, Happiest Minds had 148 active customers and has a global presence in countries like US, UK, Australia, Canada and the Middle East. The business units of the company is assisted by the 3 Centres of Excellence which are Internet of Things, Analytics / Artificial Intelligence, and Digital Process Automation. In Fiscal 2020, 96.9% of the company's revenues came from digital services which is one of the highest among Indian IT companies.
Happiest Minds delivers services across industry sectors such as Retail, Edu tech, Industrial, BFSI, Hi-Tech, Engineering R&D, Manufacturing, Travel, Media and Entertainment.
Competitive Strengths
Company Promoters:
Mr. Ashok Soota is the promoter of the company.
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | ||||
|---|---|---|---|---|---|
| 30-Jun-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 5,730.8 | 5,081.5 | 4,135.2 | 3,869.9 | |
| Total Revenue | 1,869.9 | 7,142.3 | 6,018.1 | 4,891.2 | |
| Profit After Tax | 501.8 | 717.1 | 142.1 | (224.7) | |
Objects of the Issue:
The company proposes to utilise the Net Proceeds from the fresh issue towards funding the following objects:
Happiest Minds IPO Details
| IPO Date | Sep 7, 2020 - Sep 9, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 42,290,091 Equity Shares of ₹2 (aggregating up to ₹702.02 Cr) |
| Fresh Issue | 6,626,506 Equity Shares of ₹2 (aggregating up to ₹110.00 Cr) |
| Offer for Sale | 35,663,585 Equity Shares of ₹2 (aggregating up to ₹592.02 Cr) |
| Face Value | ₹2 per equity share |
| IPO Price | ₹165 to ₹166 per equity share |
| Market Lot | 90 Shares |
| Min Order Quantity | 90 Shares |
| Listing At | BSE, NSE |
Happiest Minds IPO Tentative Date / Timetable
| Bid/Offer Opens On | Sep 7, 2020 |
| Bid/Offer Closes On | Sep 9, 2020 |
| Finalization of Basis of Allotment | Sep 14, 2020 |
| Initiation of Refunds | Sep 15, 2020 |
| Credit of Shares to Demat Account | Sep 15, 2020 |
| IPO Shares Listing Date | Sep 17, 2020 |
Happiest Minds IPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 90 | ₹14,940 |
| Maximum | 13 | 1170 | ₹194,220 |
Happiest Minds IPO Promoter Holding
| Pre Issue Share Holding | 61.77% |
| Post Issue Share Holding | 53.25% |
Happiest Minds IPO Offer Size by Investor Category
The Percentage of Offer Size available for Allotment/allocation:
- QIBs: 75%
- Non-Institutional Investors: 15%
- Retail Individual Investors: 10%
Risks to Investors in Happiest Minds IPO
- The two book running lead managers associated with the Offer have handled 11 public issues in the past three years out of which 5 closed below the issue price on the listing date.
- The average cost of acquisition for the Promoter Selling Shareholder is ₹34.68 and the Investor Selling Shareholder is ₹24.91, and the offer price at the upper end of the price band is 166.
- The PE ratio based on diluted EPS for Fiscal 2020 for the Issuer at the upper end of the Price Band is as high as 31.0 as compared to the average industry peer group PE ratio of 26.9.
Happiest Minds IPO Subscription Status (Bidding Detail)
No. of Times Issue Subscribed (BSE + NSE) | ||||
|---|---|---|---|---|
As on Date & Time | QIB | NII | RII | Total |
Shares Offered | 12,687,028 | 6,343,513 | 4,229,009 | 23,259,550 |
Sep 9, 2020 15:30 | 77.43x | 351.46x | 70.94x | 150.98x |
 Detail Live Subscription Status){kind=link}
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