Details
- Dates: 7-9 Sept 2020
- Issue Size: ₹702.02 Cr
- Offer for Sale: ₹592.02 Cr (Around 84% of the issue)
- Fresh Issue: ₹110 Cr (Around 16% of the issue)
- Face Value: ₹2 Per Equity Share
- Price Band: ₹165-166
- Post issue market capitalisation: ₹2,424 Cr – 2,438 Cr
- Market Lot: 90 Shares amounting to ₹14,940
- Promoter Holding Pre IPO: 61.77%
- Promoter Holding Post IPO: 53.25%
- IPO Listing At BSE, NSE
- Around ₹316 Cr raised from 25 anchor investors. For the complete list of anchor investors click here
- It has been subscribed 150.98 times as of today.
Objectives of the Issue
- To satisfy general working capital requirements
- To meet general corporate purposes
Company Description
- Promoted by Ashok Soota and incorporated on March 30, 2011, and Positioned as “Born Digital. Born Agile” Happiest Minds Technologies Limited (“Happiest Minds”) focuses on delivering a seamless digital experience to its customers.
- Its offerings include, among others, digital business, product engineering, infrastructure management and security services.
Promoter
- Prior to founding the Company, Ashok was the Founding Chairman and Managing Director of MindTree Limited.
- He was the Vice Chairman of Wipro Limited and Senior Vice President of Shriram Refrigeration Industries Limited prior to co-founding MindTree Limited.
Financials
| Title | Q1FY21 | FY2020 | FY2019 | FY2018 |
|---|---|---|---|---|
| Total Revenue | 186.9 | 714.23 | 601.81 | 489.12 |
| YOY Growth | 18.68% | 23.04% | ||
| PAT | 54.51 | 60.53 | 17.36 | -25.2 |
| YOY Growth | 248.68% | 168.89% | ||
| EBITDA | 47.82 | 113.12 | 66.28 | 7.62 |
| YOY Growth | 70.67% | 769.82% | ||
| Total Assets | 573.08 | 508.15 | 413.52 | 386.99 |
| YOY Growth | 23% | 6.86% | ||
| GP margin | 25.59% | 15.84% | 11.01% | 1.56% |
| NP margin | 29.17% | 8.47% | 2.88% | -5.16% |
Risk Factors
- 77.5% of their clientele comes from the US vs the industry average of 65% posing concentration risk.
- Around 29% of company’s shares pledged for 40 Cr loan by the promoter, which the management has said will be removed after the IPO lists.
Company Positives
- Given the company’s focus on digital technologies and minimal legacy revenue/add-on revenue, HMT has a clear differentiator with reference to the verticals it services, with the biggest including Edutech (27% contribution in 1QFY21) and Hitech (20.5%) owing to its strong product engineering pedigree.
- It has substantial experience in next-generation technologies, with its expertise including technological capabilities developed to support mobile connectivity with other devices, social media, big data analytics and cloud delivery, among others
(Disclaimer: I am not a SEBI registered investment adviser, kindly consult your financial adviser before taking any investment decisions.)