The initial public offering of Happiest Minds Technologies Ltd. continued to gain strong interest from investors, particularly led by demand in the retail segment.
The Rs 702-crore offer was subscribed 8.40 times at the end of the second day of bidding on Tuesday, according to data by Axis Capital. It received a total of 19.5 crore bids against the 2.33 crore shares on offer.
Retail investors made up for bulk of the demand. The retail segment was subscribed 38.85 times. High-networth individuals bid 3.96 times of the shares earmarked for them. The portion for institutional buyers, excluding anchor investment, has only been subscribed 0.47 times.
Happiest Minds, in its red herring prospectus, said it will use the net proceeds from the maiden offer for long-term working capital and general corporate purposes.
Incorporated in March 2011, Happiest Minds has three business units—digital business services, production engineering services and infrastructure management and security services. The company has strategic alliances with Microsoft Corp., Amazon Web Services, Pimcore, Salesforce.com Inc. and PTC, among others, for all its business units. The IT services provider had 148 active customers as on June 30.
Chairman Ashok Soota expects Happiest Minds to grow at an annualised rate of 20% compared with the industry as the mid-sized information technology firm earns almost all of its revenue from the margin-accretive digital segment.
While peers are on track to increase their exposure to this segment, Happiest Minds already earns 97% of its revenue from digital services, Soota told BloombergQuint.
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