/Happiest Minds raises Rs 316 crore from 25 anchor investors

Happiest Minds raises Rs 316 crore from 25 anchor investors

Mumbai: Ashok Soota-promoted Happiest Minds Technologies raised a total of Rs 315.91 crore from 25 anchor investors, ahead of the launch of its Rs 702-crore initial public offer (IPO) on Monday.

The investors include Government of Singapore, Pacific Horizon Trust, Kuwait Investment Auth Fund, and nine mutual funds among many others.

Here are the full details of the anchor investments:

happiest minds anchor 1
happiest minds achor 2

With services such as cloud and security and analytics accounting for 97 per cent of its revenues, the Bengaluru-headquartered company is more of a digital services company than legacy IT players, which have only 35-50 per cent of their revenues coming from the segment.

At the price band of Rs 165-166, the issue is seeking a valuation for 26.76 times FY20 earnings per share. Analysts said that the valuations look high, but given the demand for midcap and smallcap IT stocks these days, risk-taking investors can consider subscribing to the IPO.

Soota, one of the co-founders of Mindtree, would offload 8,414,223 shares while CMDB II (JP Morgan Asset Management) 27,249,362 shares in the offer for sale (OFS). This would amount to Rs 592 crore. This would be JP Morgan Management‘s entire 19.3 per cent stake.

The company would also raise Rs 110 crore by offering fresh shares, which would be utilised to meet long-term working capital requirements and general corporate purposes.

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Markets-Economic Times