Happiest Minds Technologies IPO opens today — grey market offering over 60% premium

BCCL
  • Happiest Minds Technologies’ initial public offer (IPO) opens for subscription today.
  • The grey market premium currently suggests an upside of 60% over the issue price band.
  • Here’s what brokerages have to say about the IPO.
Advertisement
Ashok Soota backed IT speciality company Happiest Minds Technologies’ initial public offer (IPO) is all set to open today for subscription; the company aims to raise ₹702 crore.

Ahead of the IPO today, the company has already raised ₹316 crore from the anchor investors like the Government of Singapore, Goldman Sachs, Nomura Funds, and Kuwait Investment Authority.

Happiest Minds Tech has set an issue price of ₹165-166 per equity share. And, the shares are already hot in the grey market. The grey market premium currently suggests an upside of 60% over the issue price band. It is currently hovering in the range of ₹105-₹110 per share.

Advertisement

What is the Grey market premium?

Grey market premium is the measure of the extra amount that the market is ready to pay for a newly listed company’s share.

Although, grey market premium is not an official measure of the market premium. But it is a fair indicator of demand for the shares in the market.

Advertisement

Brokerages on Happiest Minds

Under its IPO, Happiest Minds Tech will issue a fresh 66.2 lakh shares, after which the promoter’s stake will come down to 53% from the current 62%.

Brokerage View on Happiest Minds Tech IPO
KR ChokseySubscribe
Prabhudas Lilladher Subscribe
BP WealthSubscribe

According to KR Choksey brokerage, Happiest Minds Tech IPO is a ‘fairly’ attractive deal with the potential for healthy listing gains as well as long term stock price appreciation. “Given the Happiest Minds Tech’s growth profile and >97% digital revenue share, we believe the company can comfortably command a price-to-earnings of 24x-25x, which makes the IPO valuation fairly attractive for long term investors,” the report said.

Advertisement
Brokerage Prabhudas Lilladher also maintains a ‘subscribe’ call for Happiest Minds Tech IPO “led by a focus on digital and limited exposure to the legacy business,” the brokerage said. PL citing the Frost & Sullivan Report noted that the global digital services market of $691 billion in 2019 is estimated to grow at a compound annual growth rate of 20.2% to $2 trillion by 2025, which is expected to lead to healthy gains in future.

SEE ALSO: Here’s a look at the top IPOs lined up to hit the market this year

Top stocks to watch— Vodafone Idea, Future Retail, RIL, IndiGo, SpiceJet, Allcargo, Happiest Minds Tech, Tata Motors, Maruti Suzuki and more