Happiest Minds was incorporated in 2011 with the name, “Born Digital. Born Agile”. This company is a Bangalore start-up based on IT service provider. The company is divided into 3 parts; Digital Business service (DBS), Product Engineering Services (PES) AND Infrastructure and management security service (IMSS). The IPO price band was issued of Rs. 165-166. The lot size was of 90 shares each. The total issue size was of Rs. 702 crores. The open and close date was of 7th September and 9th September respectively.
The IPO was over-subscribed 151 times, and the stock is all set to be listed this week on 17th September. Looking at the past records, it is predicted that if an IPO is over-subscribed over 100 % times, then once the stock is listed on the exchanges it already has gained 70% price rise. The prevailing grey market suggest similar effects on this stock too.
The main reason of this IPO was to meet long-term working capital requirements as well as general corporate purposes. The basis of share allotment for Happiest Minds IPO is likely to be announced today. In the unofficial market for unlisted shares, the stock quoted a premium of Rs 142-146 per share on Monday, said Dinesh Gupta of Unlisted Zone, an outfit that deals in unlisted shares.
It is believed that, the listing price will be around Rs. 308-312, which means there will be a listing gain of 88% for retail investors who get the share allotment. For HNIs, at the upper price band limit of Rs 166- and 351.46-times subscription, a 7-day leverage at 7 per cent interest would add Rs 78.32 to the HNI cost. The break even for HNIs would be Rs 244 (Rs 166 + Rs 78.32). At the current grey market premium, an HNI would still make Rs 63.68-67.68 per share.
It was earlier considered that the IPO is very risky because of its high valuation and market volatility. And it was believed that the launch of an IPO in these times means the market is greedy.
NEWS REPORTED BY:
VRIDHI BHAGNARI.
