Happiest Minds delays IPO as profit declines

BENGALURU: Happiest Minds Technologies may defer its plans for listing on the stock market by at least a year. The company, founded by former Mindtree chairman Ashok Soota in 2011, had earlier committed to become publicly-listed in financial year 2020.

Happiest Minds, backed by JP Morgan Private Equity Group and Intel Capital, reported revenues of nearly Rs 446 crore at the end of 2016-17 as against Rs 351 crore during the year-ago period, according to the Ministry of Corporate Affairs (MCA).

The company's profit dipped to Rs 4.24 crore in FY17, as against Rs 5.54 crore during the corresponding period.

"We had said that we would go public in FY2020. We have also been impacted in terms of growth, we may be still growing more than double the industry, but that is lower than we would have obviously expected when we began and stated the targets and goals. Odds are, we may defer that (IPO) by a year," Soota told ET in an interview.

The IT services industry veteran said the investors are, however, not in hurry for the company to go public. "Our investors are not rushing us (and) they are open enough and realised that markets have changed; we need a little more time."

Happiest Minds, which became profitable in 2016, is ramping up its internet of things (IoT) and IP business to achieve faster growth.

The company, according to Soota and Salil Godika - CEO, Digital Business Services - would see a significant portion of business coming from IP-led services and its 'digital upbringing' would help in achieving that.