Happiest Minds Technologies IPO opens today — grey market offering over 60% premium

• Happiest Minds Technologies’ initial public offer (IPO) opens for subscription today.
• The grey market premium currently suggests an upside of 60% over the issue price band.
• Here’s what brokerages have to say about the IPO.

Ashok Soota backed IT speciality company Happiest Minds Technologies’ initial public offer (IPO) is all set to open today for subscription; the company aims to raise ₹702 crore.

Ahead of the IPO today, the company has already raised ₹316 crore from the anchor investors like the Government of Singapore, Goldman Sachs, Nomura Funds, and Kuwait Investment Authority.

Happiest Minds Tech has set an issue price of ₹165-166 per equity share. And, the shares are already hot in the grey market. The grey market premium currently suggests an upside of 60% over the issue price band. It is currently hovering in the range of ₹105-₹110 per share.


What is the Grey market premium?

Grey market premium is the measure of the extra amount that the market is ready to pay for a newly listed company’s share.

Although, grey market premium is not an official measure of the market premium. But it is a fair indicator of demand for the shares in the market.

Brokerages on Happiest Minds

Under its IPO, Happiest Minds Tech will issue a fresh 66.2 lakh shares, after which the promoter’s stake will come down to 53% from the current 62%.


According to KR Choksey brokerage, Happiest Minds Tech IPO is a ‘fairly’ attractive deal with the potential for healthy listing gains as well as long term stock price appreciation. “Given the Happiest Minds Tech’s growth profile and >97% digital revenue share, we believe the company can comfortably command a price-to-earnings of 24x-25x, which makes the IPO valuation fairly attractive for long term investors,” the report said.

Brokerage Prabhudas Lilladher also maintains a ‘subscribe’ call for Happiest Minds Tech IPO “led by a focus on digital and limited exposure to the legacy business,” the brokerage said. PL citing the Frost & Sullivan Report noted that the global digital services market of $691 billion in 2019 is estimated to grow at a compound annual growth rate of 20.2% to $2 trillion by 2025, which is expected to lead to healthy gains in future.

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