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NEW DELHI: The Rs 702 crore initial public offer (IPO) by Happiest Minds was subscribed 42 times on Day 3 of the bidding process so far. The issue concludes later today.
By 12.45 am, the issue received bids for 98,22,26,520 shares, which was 42.23 times the issue size of 2,32,59,550 shares. The issue was subscribed over 8 times on Day 2 and 2.87 times on Day 1. The quota for non-institutional investors (NIIs) was subscribed over 126 times. High net-worth individuals (HNI) who apply for over Rs 2 lakhs in an IPO fall under this category.
The quota for retail individual investors (RIIs) was subscribed 53 times and for QIB 7 times.
The digital company, whose issue is being sold in Rs 165-166 price band, raised Rs 316 crore on Friday from 25 anchor investors including Government of Singapore, Goldman Sachs, Kuwait Investment Authority, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment. At the upper price band, the issue is seeking a valuation of 26.76 times FY20 earnings per share.
Motilal Oswal Securities said that the company's valuations are comparable to larger mid-sized IT companies. It likes the company given its strong presence in digital services, business model with end-to-end capabilities and fast-improving financial performance.
"Investors can 'Subscribe' to the IPO. Further considering market conditions and bright prospects for IT companies post-Covid-era, one may also get listing gains," the brokerage said.
Angel Broking said given the high exposure to digital services and strong promoter background, the company will continue to grow at a faster pace as compared with similar-sized companies and, therefore, should command a premium valuation to the peer group.
Choice Broking said that the issue seems to be fully priced compared with its domestic peers. But it noted that the company cannot be fully comparable with the domestic IT peers.
"There are international peers, who derive almost all of their revenue from digital services, trading at a P/E multiple ranging from 67-139 times. Assuming the valuations of these companies in the US markets to be frothy, the valuation demanded by Happiest Minds seems to be attractive," it said.
By 12.45 am, the issue received bids for 98,22,26,520 shares, which was 42.23 times the issue size of 2,32,59,550 shares. The issue was subscribed over 8 times on Day 2 and 2.87 times on Day 1. The quota for non-institutional investors (NIIs) was subscribed over 126 times. High net-worth individuals (HNI) who apply for over Rs 2 lakhs in an IPO fall under this category.
The quota for retail individual investors (RIIs) was subscribed 53 times and for QIB 7 times.
The digital company, whose issue is being sold in Rs 165-166 price band, raised Rs 316 crore on Friday from 25 anchor investors including Government of Singapore, Goldman Sachs, Kuwait Investment Authority, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment. At the upper price band, the issue is seeking a valuation of 26.76 times FY20 earnings per share.
Motilal Oswal Securities said that the company's valuations are comparable to larger mid-sized IT companies. It likes the company given its strong presence in digital services, business model with end-to-end capabilities and fast-improving financial performance.
"Investors can 'Subscribe' to the IPO. Further considering market conditions and bright prospects for IT companies post-Covid-era, one may also get listing gains," the brokerage said.
Angel Broking said given the high exposure to digital services and strong promoter background, the company will continue to grow at a faster pace as compared with similar-sized companies and, therefore, should command a premium valuation to the peer group.
Choice Broking said that the issue seems to be fully priced compared with its domestic peers. But it noted that the company cannot be fully comparable with the domestic IT peers.
"There are international peers, who derive almost all of their revenue from digital services, trading at a P/E multiple ranging from 67-139 times. Assuming the valuations of these companies in the US markets to be frothy, the valuation demanded by Happiest Minds seems to be attractive," it said.
2 Comments on this Story
Baba Ramdev bumper laying hoga listing gain milega. yahllha!! | |
Rahul Gwalior hi |