Happiest Minds

IPO Size

`702 Cr

Price Band

`165-166 Per Share

Minimum Lot Size

90 Share

Face Value

`2 Per Share

Employee Discount

NA

Retail Allocation

10%

Issue Open Date

07 Sep 20

Issue Close Date

09 Sep 20

Listing Date

17 Sep 20

About the Company:

Positioned as "Born Digital Born Agile", the tech-rookie focuses on delivering a seamless digital experience to their customers. The company was incorporated in 2011 by Ashok Soota (Co-founder of Mindtree). The product portfolio of the company includes digital transformation, product engineering, infrastructure management and security services. The company possesses the capabilities of providing an end-to-end solution in the digital space. With a vision of customer-centric approach, the tech-savvy aims to provide strategically viable, futuristic and transformative digital solutions to the customers.

Outstanding Litigation:

S.No. 1 - Company 2 - Directors 3 - Promoters
Entity Name By the Company Against the Company By the Director Against the Director By the Promoter Against the Promoter
Criminal cases - - - - - -
Material civil cases Not quantifiable 37.7 - 231.9 - -
Taxation matters - - - - - -
Regulatory Procedings - - - - - -
Amt. (In Million Rs.) - 37.7 - 231.9 - 0

Financial Statement:

Income Statement FY18 FY19 FY20 Q1FY21
Gross Operating Income 462.9 590.4 698.2 177
Cost of Employee & Inventory 356.9 385.1 441.2 108.3
Other Expenses 124.6 150.5 159.9 30.9
EBITDA -18.6 54.8 97.1 37.8
Depreciation 20.8 24.8 20.2 5.1
Interest 10 15.9 8 1.9
Other Income 26.2 11.5 16 10
Exceptional Items   12.6 11.3  
Profit Before Tax -23.2 13 73.6 40.8
Tax -0.6 -1.2 1.9 -9.3
Profit After Tax -22.6 14.2 71.7 50.1

Recommendation

As per CA Ajay Chouhan, SEBI Registered Research Analyst, recommendation is to 'Subscribe'. The company's promoter Ashok Soota has been the Co-founder of Mindtree and Ex-Vice Chairman of Wipro. The small-sized rookie IT firm has a strong presence globally as 77.5% business comes from U.S. while India accounts for 11.9% of the total business. The customer portfolio of the company inculcates 157 active customers out of which 48% revenues come from top 10 clients. The post Covid-era which will be more tech-savvy is making it a strong bet for the investors. With the presence of strong promoter and unavailability of any Indian competitor, the IPO deserves listing at healthy premium.

Promoter of the Company

The promoter of the company is Mr. Ashok Soota.

Peer Comparison

The company doesn't have any competitor domestically while its true competitors are global players such as EPAM, Endava and Globant.

Objectives of the Issue

Offer for Sale

The object of the Offer for Sale is to allow the shareholders to sell an aggregate of up to [●] Equity Shares held by them. The company will not receive any proceeds from the Offer for Sale. Offer for Sale Size is of 35,663,585 Equity Shares making it an amount of Rs. 592 crores at the upper price band.

Fresh Issue

The net proceeds from the fresh issue will be utilized in meeting long term working capital requirement having an amount of Rs.101 crores while residual amount will be used for general corporate purpose.