While Happiest Minds Technologies (HMT) made a stellar debut with 123 per cent listing gains, more than 90 per cent of non-institutional investors in the initial public offer (IPO) seem to have sold out on Day 1. HMT closed with gains of 123.49 per cent at ₹371 against the issue price of ₹166. The non-institutional portion, mainly subscribed by retail investors and high networth individuals (HNI), consisted of 2.32 crore shares. If data show 2.2 crore shares were marked for delivery on listing day on BSE and NSE, it means 95 per cent of retail investors and HNIs sold their holding on the first day, analysts said. Plutus Wealth Management, a London-based fund, bought 10 lakh shares.
“Savvy investors entered the IPO at a price-earnings multiple of 31 times based on FY2020. On listing, these investors exited at a PE of 68 based on the closing price of the share, which is what 95 per cent delivery tells us. Now, those who bought in on Thursday, would want to exit at a PE of 84 times or more, which means the share has to rise to ₹450. Interesting times,” said Arun Kejriwal, Director, investment advisory firm, KRIS.