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Happiest Minds IPO : Key Points

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Happiest Minds IPO : Key Points

With recovering markets from March lows and good liquidity, IPO season is finally kicking in. A number of IPOs are expected to hit the street in upcoming months. Happiest Minds, Bengaluru Based Small Cap IT service company is coming out with IPO starting 7th Sept. Investors should keep these things in mind before arriving at the decision of subscription:

About IPO

IPO Date Sep 7 – Sep 9

IPO Price ₹165 – ₹166

Market Lot 90 Shares

Allotment Finalization Sep 14

Refunds Sep 15

Listing Date Sep 17

About Company

Happiest Minds is a small cap IT company, positioned as ‘Born Digital. Born Agile’. The company 148 active customers in countries like US, UK, Australia, Canada and the Middle East.

Financials

Company revenue grew from 463 crores in 2018 to 698 crores in 2020.

1 - The TradeLog

                 Net Profit grew from -23 crores in 2018 to 72 crores in 2020.

2 - The TradeLog

Peers

Listed peers include Infosys, MindTree, LTI and Coforge (formally listed as NIIT Tech.), whereas it has Accenture, Cognizant as global peers.

Valuations

At the price band is Rs 165-166, the stock carries P/E value of 31.

3 - The TradeLog

GMP

The shares are being traded at ₹266 (60% above IPO offer price) indicating huge demand among traders. Massive GMP premium is expected to attract huge subscription by HNIs and NIIs.

Should You Subscribe?

IT industry is least affected by covid as most of the work is being done remotely. Investors are bullish in peer companies (Infy, LTI). P/E looks attractive with FY21 earning forecast. With GMP 60% above IPO price, one should go ahead and subscribe to this offer.

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