Bangalore-based start-up ‘Happiest Minds’ hits the IPO jackpot- View details here!
77 year old Ashok Soota's Happiest Minds' hits the IPO jackpot
Ashok Soota, recognized to spearhead India’s information technology services industry, has led three outsourcing companies including one of the nation’s largest, Wipro Ltd., and taken two of them public.
The second happened this week when initial public offerings of his startup, Happiest Minds Technologies Ltd., got excess subscription 151 times. The IPO got bids for 3.51 billion shares versus the 23.3 million on offer, ranking it among India’s most successful first-time share sales of this decade.
“The IPO got a boost from the credibility of the founder,” said Abhimanyu Sofat, head of research at IIFL Securities Ltd. in Mumbai. “That added to investor confidence and led to institutional and foreign investors wanting a piece of the pie.”
Happiest Minds, which bears almost all the revenue from digital services, is one of two IPOs this week to attract Indian investors. An offer from Route Mobile Ltd., a cloud infrastructure provider, received excess subscription 73 times on the last day of the sale on Friday as the craze for technology stocks globally rubs off on small companies too.
The huge demand created for both the companies bodies well for India’s IPO market, which has seen only two main offerings in 2020, despite a floating stock market.
“The oversubscription reflects the premium at which most of the Indian market is priced at,” said Deepak Jasani, head of research at HDFC Securities Ltd. “The Happiest Minds IPO pricing was quite reasonable and left something on the table for investors.”
As per reports in NDTV, the Happiest Minds’ shares got sold off in a price range of ₹ 165-166 ($2.3). Mr Soota raised ₹ 140 crore by selling part of his stake. The sale closed on Wednesday and the shares are likely to begin trading next week.
Mr Soota, 77, founded the Bengaluru-based startup in 2011. The venture followed a separation with the co-founders at his previous startup Mindtree Ltd., till March 2007. That IPO was oversubscribed more than 100 times.