InvestorQ : Can you share the details of the IPO of Happiest mind Technologies Ltd.? What are your views on it?
IPO
Gayatri Surendran made post

Can you share the details of the IPO of Happiest mind Technologies Ltd.? What are your views on it?

Answer
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varsha Motwani answered.
3 weeks ago


Happiest Mind Technologies is an IT solutions provider incorporated in FY11, which was born-digital and specializes in disruptive technologies. The company offers services like Software and Infrastructure as a service, security, analytics, and IoT. For the FY20, its Product Engineering Services was the largest Business Unit accounting for 50.5% of its Revenue.

The company is all set to bring its IPO, these are the issue details:

Face Value: Rs 2/share
Public Issue: 4.23 crore shares, out of which:
a. Fresh issue: 0.66 crore shares
b. Offer for Sale: 3.57 crore shares

Price Band: Rs 165-166
Issue size: Rs 702 crore
Bid lot: 90 shares
Opening Date: 07-09-2020
Closing Date: 10-09-2020

Investment Outlook:
This company offers an opportunity to invest in an Indian digital IT service provider which is likely to post the top-tier growth rate in the IT sector. Though, HMTPL’s growth profile is much smaller as compared to its listed international peers. However, the company’s ROEs are higher as compared to its peers and have an average FCFF conversion of 130% over the FY18-20. It has a P/E ratio of 26.8X for FY20, which is comparable with larger Tier-II peers. 

Mr. Ashok Soota is the Executive Chairman and Director of the company who is also an industry veteran and has experience in building/running successful IT companies or business units. So, in terms of promoter reputation, we can say that company is good.
So, as per our view, the issue can be subscribed to. However, we also recommend doing proper research and analysis from your end before relying on any one’s opinion. These are my personal views based on available data collected.