Bengaluru-based Information Technology (IT) services company Happiest Minds Technologies plans to launch its IPO and has submitted draft papers with market regulator SEBI. According to a report by VCCircle, Happiest Minds IPO will raise as much as INR110 crore (INR1.1 billion) by issuing fresh shares. The INR700 crore IPO will also include share sale by promoters and existing investors including JP Morgan, added the report.
The company plans to use IPO proceeds towards augmenting its working capital and general corporate purposes.
Happiest Minds Technologies is founded by Ashok Soota who earlier led another IT services company MindTree Limited to IPO. The management team comprises of seasoned professionals with experience in other IT companies.
Growing Financial Muscle
According to Happiest Minds’ website, the company’s revenues for the year ended 31 March 2020 grew 18.7% to INR714.2 crore. This figure is remarkable as the company posted a top line of just INR445.8 crore in FY2017. Its comprehensive net income registered multifold increase from INR6.2 crore in FY2019 to INR62.4 crore in the latest year.
Happiest Minds IPO: Amid Troubled Waters
Happiest Minds’ IPO plans come at a time when India’s primary market is silent amid heightened volatility in broader markets following the outbreak of Coronavirus pandemic and the ensuing national lockdowns.
As a result, there has been limited activity on the IPO front in recent months. The last mainboard IPO was SBI Cards and Payments which listed on 16 March and there has been no further public offers since then.
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This is understandable as risk appetite among investors have gone down considerably. In a similar vein, the IPO of Antony Waste Handling Cell was withdrawn in March after it received poor subscription even and even an extension did not help.
As such, Happiest Minds’ IPO filing shows its management’s confidence in sailing through the troubled waters, although it will still take some time for SEBI to vet the offer document and issue its observations. Once SEBI greenlights the offer, the clearance is valid for a year.
