Happiest Minds IPO. Is it worth subscribing?

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Happiest Minds: Company Background

Happiest Minds is a Bangalore based Information Technology company. A Mindful IT Company (Happiest Minds) is a service provider company established in the year 2011 located and headquartered in Bangalore, Karnataka. With operations in the U.S., UK, Canada, Australia, and the Middle East and an active customer base of over 148 in number globally. 

The company started by Mr.Ashok Soota who was one of the co-founders of ‘Mindtree’ (A well established IT Company. Mr.Ashok left Mindtree to shart his own venture in 2011. The company has already raised ₹316 crores from anchor investors, including the Government of Singapore, Goldman Sachs, and Kuwait Investment Authority.

The digital transformation going on around the globe calls for better implementation of IT into our lives. HM Technologies is an enterprise that enables the digital transformation of various enterprises. HM Technologies deliver various services across industry sectors such as retail, edu-tech, industrial, BFSI, hi-tech, engineering R&D, manufacturing, travel, media and entertainment, and others.

India’s Information Technology sector is growing at a faster pace. Even the COVID based economic slowdown didn’t impact the sectoral growth and estimations. The sector is estimated to grow at over 7.5% for the FY 2021 and further the sector to be valued at over US$ 350 billion industry by 2025 from its current stage that’s valued at over US$ 190 billion. 

Why India flourish in the Information Sector globally?

The information sector is the 21st century is led by companies such as TCS, Infosys, HCl, Wipro, and many more. Garnering a major part of global IT service provider tasks and the same to grow further in the coming days. Mainly because of our ability to provide better service to the global market at a cost-efficient rate. Just as how China led the world in the Manufacturing sector. India to lead the world in the Service sector.

The internet boom that led to the Dot-com crash in early 2000, and the rejuvenation of the technology sector that has gotten India’s economy to what we are today. The IT sector contributes to over 7.5% of our annual GDP figures with a sectoral revenue aggregating over US$ 190 billion. With over 2/3rd of the income via service export and the rest contributed by the domestic sales. The Sector to grow in double digits in the coming days.

What kind of service do they provide?

Amongst many, the three services offered by Happiest Minds Technologies are as follows;

  • Digital Business Service (DBS) – It helps the organization to transform its business process with the digitization. In-depth knowledge of digital technologies and domain management expertise. HM helps the organization in developing custom applications, maintain and manage the designing & testing operations. Maintenance of domain platform, Consulting, and other activities.
  • Product Engineering Service (PES) – An engineering consulting activity. It helps an organization in transforming the digital potential software. The PES helps an organization by making its software platform more safe and secure. Instead of relying on home-grown talent and resources. With high cost and management expertise requirements. Companies can leverage the required expertise with the assistance of HM Technologies Product Engineering Service. Offering the clients with the right set of technologies as per the requirements. A tailored built software that feeds into every need. Various custom-designed software services will be provided by HM Technologies.
  • Infrastructure and Management Security Service (IMSS) – HM Technologies provides services such as infrastructure and management of the software, custom software development, management, and end-to-end monitoring of application software. With disruptive technologies and an innovative mindset, HM Technologies serve customer priorities such as cost reduction, improve work efficiency, enduring product quality, and optimum security. 

Happiest Minds IPO

Source: Happiest Minds website.

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Why Happiest Minds? What are its competitive strength?

  • The company has a strong presence in digital service with over 148 active customer base. 
  • The company has a global presence in major developed and developing economies around the world.
  • The company provides end-to-end service to the client base. A one-stop for all services.
  • The company founder and team are well expertise in the sector.

Over 76% of the ‘Happiest Minds’ client base is from those sectors not impacted or barely impacted by the COVID pandemic. And over 42% of those (76% mentioned) are from Edu-tech (Education Service) and Hi-tech (Health care). The rest 24% (Travel, Hospitality, and others) are impacted by COVID based recession. The same to recover as soon as the economy takes up its stand.  

Company Financial details:

Sl.No FY 2018 2019 2020
1 Asset (In cr) 386.99 413.52 508.15
2 Revenue 489.12 601.81 714.23
3 EBITDA (In cr) -18.80 54.70 97.10
4 PAT (In cr) -22.47 14.21 71.71

Happiest Minds IPO details:

Sl.No IPO Issue details Information
1 Issue Open date 7th September 2020
2 Issue Close date 9th September 2020
3 Share price band Rs.165 – Rs.166 per share
4 Issue Size (in count) 4,22,90,091 Equity shares
5 Fresh Issue 66,26,506 Equity shares
6 Offer For Sale (OFS) 3,56,63,585 Equity shares
7 Total value Rs.702.02 crore at upper end valuation.
8 Trading hours 10:00 AM to 5:00 PM
9 Retail bid – Minimum share 1 lot (90 shares)
10 Retail bid – Minimum amount Rs.14,940/-
11 Retail bid – Maximum share 13 lots (1170 shares)
12 Retail bid – Maximum amount Rs.1,94,220/-
13 Face Value Rs.2 per share
14 Promoter stake Pre IPO (62%); Post IPO (53%)
15 Finalisation of Basis of Allotment 14th September 2020
16 Initiation of Refunds 15th September 2020
17 Credit of Shares to DEMAT Account 15th September 2020
18 IPO Share listing date 17th September 2020
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How to apply for IPO?

Steps to be followed to apply for Happiest Minds IPO via Zerodha console:

  1. Visit the Zerodha website and login to Console.
  2. Go to Portfolio and click the IPOs link.
  3. Go to the ‘Happiest Minds IPO’ row and click the ‘Bid’ button.
  4. Enter your UPI ID, Quantity, and Price.
  5. ‘Submit’ IPO application form.
  6. Visit the UPI App (net banking or BHIM) to approve the mandate.

Do not have a brokerage account? Apply for Zerodha – India’s top brokerage service. 

Disclaimer: All the information on this website is published in good faith and for general information purpose only.

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Rakshith Pai
Rakshith is a CA aspirant with half a decade of investing experience. He manages a private fund management service, AUG Funds. Wherein, AU denotes Gold and AG denotes Silver, the two most precious metals on Earth.
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