Happiest Minds
Mainboard₹702 Cr issue
+111.45%
Listing gain over issue price
Issue size
₹702 Cr
1 lot at cut-off
₹14,940
Lot size
90shares
Open
07 Sep 2020
Close
09 Sep 2020
Allotment
14 Sep 2020
Listing
17 Sep 2020
Listing performance
Issue price
₹166
Listed at
₹351
Listing-day close
₹371
Latest price
₹301.15
Close on 23 Oct 2026
Listing gain
+111.45%
Return since issue
+81.42%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 07 Sep 2020 – 09 Sep 2020
- Listing date
- 17 Sep 2020
- Face value
- ₹2 per share
- Issue price
- ₹166 per share
- Lot size
- 90 shares
- Total issue size
- ₹702 Cr
- Promoter holding
- 61.77% → 53.25% pre-issue → post-issue
- ISIN
- INE419U01012
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- 53/1-4, Hosur Main Road,, Madivala (Next to Madivala Police Station),, Bengaluru - 560 068, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,90,30,541 | — | — |
Application size
Minimum 90 shares per lot, in multiples, at ₹166
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 90 | ₹14,940 |
| Retail (max) | 13 | 1,170 | ₹1,94,220 |
| S-HNI (min) | 14 | 1,260 | ₹2,09,160 |
| S-HNI (max) | 66 | 5,940 | ₹9,86,040 |
| B-HNI (min) | 67 | 6,030 | ₹10,00,980 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,90,30,541
Anchor portion
₹316 Cr
at ₹166 per share
Valuation and performance
Valuation at offer price
₹166 per share
| Metric | Pre-issue | Post-issue |
|---|
About Happiest Minds
Happiest Minds Technologies Limited was incorporated on March 30, 2011, and converted to a public limited company on May 20, 2020. Positioned as 'Born Digital. Born Agile', the company focuses on delivering seamless digital experiences to customers through digital transformation, product engineering, infrastructure management and security services. It operates in the information technology services industry, providing end-to-end solutions in the digital space with capabilities across RPA, SDN/NFV, Big Data, IoT, cloud, BPM and security. The company has grown from ₹4,891.2 million in total income in Fiscal 2018 to ₹7,142.3 million in Fiscal 2020. It generates significant revenues from a customer base concentrated in the United States (77.3% as of June 30, 2020) and serves key industry verticals including EduTech, HiTech, Retail, TME and BFSI.
Company Analysis
from RHPHappiest Minds Technologies Limited is a digital transformation and IT services company offering product engineering, infrastructure management, security services, and advanced digital technology solutions across multiple verticals and geographies.
Happiest Minds Technologies Limited was incorporated on March 30, 2011, and converted to a public limited company on May 20, 2020. Positioned as 'Born Digital. Born Agile', the company focuses on delivering seamless digital experiences to customers through digital transformation, product engineering, infrastructure management and security services. It operates in the information technology services industry, providing end-to-end solutions in the digital space with capabilities across RPA, SDN/NFV, Big Data, IoT, cloud, BPM and security. The company has grown from ₹4,891.2 million in total income in Fiscal 2018 to ₹7,142.3 million in Fiscal 2020. It generates significant revenues from a customer base concentrated in the United States (77.3% as of June 30, 2020) and serves key industry verticals including EduTech, HiTech, Retail, TME and BFSI.
Information Technology ServicesDigital TransformationProduct EngineeringInfrastructure Management and Security Services
Objects of the Issue
- To meet long term working capital requirement ₹1,010.0 million p.22
- General corporate purpose ₹30.3 million p.22
- Meeting long term working capital requirements and general corporate purposes ₹1,100.0 million (Fresh Issue) p.104
- To meet long term working capital requirement ₹1,010.0 million p.103
- General corporate purposes ₹30.3 million p.106
Issue Structure
- Total Issue
- ₹7,020.2 million
- Fresh Issue
- 6,626,506 Equity Shares aggregating to ₹1,100.0 million
- Offer for Sale
- 35,663,585 Equity Shares aggregating to ₹5,920.2 million
- Price Band
- ₹165 to ₹166 per Equity Share
- Lot Size
- 90 Equity Shares and in multiples of 90 Equity Shares
- Face Value
- ₹2 per Equity Share
Business Model
The company earns revenue primarily through IT services contracts. It operates under three main contract models: time-and-materials contracts (where clients pay daily or hourly rates for services), fixed-price contracts, and managed services. Time-and-materials contracts represented the majority of revenue, with fixed-price contracts comprising 18.8% of revenue from contracts with customers for the three months ended June 30, 2020. The company also derives revenue from digital transformation services, product engineering services, and infrastructure management and security services across multiple industry verticals.
Business Segments
Includes digital transformation and business process management services
Provides product engineering and development services
Delivers infrastructure management and security-related services
Provides information technology services, software development, and enterprise solutions to global customers
Drives digital transformation through digital application development and application modernization for improved customer experience, enhanced productivity and better business outcomes; implementation of solutions for improving data quality; consulting and domain-led offerings such as digital roadmap and cloud migration.
Helps customers create digital-ready, next generation products and platforms across software and hardware. Services include digital foundry (proof-of-concept to MVP), startup technology acceleration, platform engineering, device engineering, and quality engineering across enterprise SaaS, education & publishing, consumer solutions, industrial, and networking sectors.
Provides end-to-end monitoring and management capability with secure ring fencing of customers' applications and infrastructure. Offers 24x7 production support and managed security services for mid-sized enterprises and technology companies. Specialized in automation of business and IT operations with DevSecOps model and NOC/SOC operations.
Product Engineering Services business unit
Digital Business Services business unit providing digital transformation and enterprise solutions
Infrastructure Management and Security Services business unit
Provides infrastructure management and security services
Provides digital business solutions
Provides product engineering services
Delivers enterprise applications and customised solutions that enable organizations to be smarter and accelerate business transformations. Provides advisory, design & architecture, custom-app development, package implementation, testing and on-going support services to IT initiatives.
Assists software product companies in building robust products and services that integrate mobile, cloud and social technologies. Helps clients understand the impact of new technologies and incorporate these into their product roadmap.
Delivers integrated end-to-end infrastructure and security solutions with specialization in cloud, virtualization and mobility. Provides advisory, transformation, managed & hosted services and secure intelligence solutions.
Delivers integrated end-to-end infrastructure and security solutions with specialisation in cloud, virtualisation and mobility across a multitude of industry verticals and geographies. Provides advisory, transformation, managed and hosted services, and secure intelligence solutions. Has unique productised solution platforms for smart infrastructure and security solutions.
Delivers high value, cost-effective enterprise applications and customised solutions that enable organisations to be smarter and accelerate business transformations. Provides advisory, design and architecture, custom-app development, package implementation, testing and on-going support services to IT initiatives.
Assists software product companies in building robust products and services that integrate mobile, cloud and social technologies. Helps customers understand the impact of new technologies and incorporate these technologies into their product roadmap. Focuses on technology depth, innovation and solution accelerators.
SWOT Analysis
Strengths
- • Strong promoter with technology sector pedigree(p.1)
- • Positioned as 'Born Digital. Born Agile' with end-to-end digital solutions capability(p.22)
- • Diverse service offerings across advanced digital technologies(p.22)
- • Recent strong financial growth trajectory(p.29)
- • High repeat customer base providing revenue stability(p.32)
- • Revenue recognition flexibility with time-and-material and fixed-price contracts(p.46)
- • Established security infrastructure and incident response capability(p.46)
- • 97% digital IT services revenue, highest among Indian IT companies(p.142)
- • Strong ISV partnerships with global technology leaders(p.144)
- • Growing high-value customer accounts with strong repeat business(p.144)
- • Agile delivery methodology at scale(p.142)
- • Mindful corporate culture with strong employee engagement(p.142)
- • Strong EBITDA growth trajectory(p.143)
- • Diversified customer base across multiple geographies and sectors(p.162)
- • Significant recurring revenue from time-and-material contracts which mitigate cost and completion risks(p.161)
- • Strong geographic revenue concentration in USA with growing stability(p.161)
- • Experienced leadership with proven track record in IT industry(p.180)
- • Significant workforce providing scalability and delivery capability(p.163)
- • Industry recognition and awards demonstrating credibility(p.162)
Weaknesses
- • High customer concentration risk with single largest customer at ~15% of revenues(p.28)
- • Significant geographic revenue concentration with 77%+ from US market(p.28)
- • Historical loss in Fiscal 2018 with accumulated losses requiring capital reduction(p.30)
- • High attrition rates among IT professionals at 18.7% in Fiscal 2020(p.31)
- • Dependence on key personnel including Promoter with no key man insurance(p.29)
- • Promoter pledge on significant shareholding creates control risk(p.30)
- • Concentration of revenues in limited industry verticals with over 80% from 5 sectors(p.41)
- • Limited customer contract terms without long-term commitments(p.32)
- • Revenue recognition delays due to customer acceptance criteria(p.46)
- • Non-competition clauses restrict business expansion in specific industries(p.46)
- • Vulnerability to data security breaches and cyberattacks(p.46)
- • Restrictive financing covenants limit operational flexibility(p.47)
- • Historical regulatory filing delays and record-keeping inaccuracies(p.47)
- • Uncertain renewal status of critical statutory licenses(p.49)
- • Acquisitions conducted without independent valuation reports(p.49)
- • Related party transactions with potential conflicts of interest(p.50)
- • Dependence on a limited customer base with concentration risk(p.142)
- • Significant exposure to USA market creates geographic concentration(p.145)
- • Modest absolute company size relative to peers(p.151)
- • High revenue concentration in USA market creates customer concentration risk(p.161)
- • Significant goodwill impairment charges indicating acquisition integration challenges(p.208)
- • Limited onsite presence relative to offshore model creates execution constraints(p.161)
- • Negative equity in prior years indicating financial distress history(p.207)
- • Dependence on founder with significant personal shareholding(p.197)
Opportunities
- • Expansion in high-growth digital transformation and emerging technology markets(p.29)
- • Growing demand for outsourced IT services in key industry verticals(p.41)
- • Increasing adoption of advanced technologies like RPA, AI, ML and cloud services(p.22)
- • Market expansion through strategic acquisitions and organic growth(p.33)
- • Growth opportunity from increasing global demand for digital services post-pandemic(p.41)
- • Expansion of business to different customer segments and industries(p.46)
- • High-growth global digital services market expanding at 20.2% CAGR(p.142)
- • Shift from legacy IT to digital creating market transition opportunity(p.142)
- • Emerging technologies driving new service categories and demand(p.151)
- • India's favorable cost structure and maturing digital talent pool(p.145)
- • Strategic acquisition opportunities to expand capabilities and verticals(p.152)
- • Account expansion and cross-selling across three business units(p.150)
- • Digital transformation market expansion through emerging technology offerings(p.173)
- • Growth in specialized IoT and analytics services through acquisitions(p.173)
- • Expansion into new geographic markets including Middle East and additional countries(p.161)
- • Business diversification through strategic acquisitions(p.162)
- • Growing addressable market in customer segments with limited pandemic exposure(p.161)
Threats
- • US economic downturn or recession would severely impact majority revenue stream(p.29)
- • Anti-outsourcing legislation in US could restrict customer engagement(p.43)
- • Restrictions on work visas and immigration limiting employee deployment to customer sites(p.44)
- • Intense competition from large global consulting firms and low-cost offshore providers(p.36)
- • Rising IT professional wage costs in India reducing competitive advantage(p.46)
- • Foreign exchange volatility impacting profitability of US-denominated revenues(p.44)
- • Novel coronavirus and other communicable diseases disrupting operations and customer demand(p.41)
- • Industry consolidation in target verticals reducing customer base(p.41)
- • Rapid technological change creating risk of obsolescence in service offerings(p.33)
- • Shortage of skilled IT professionals in emerging technologies limiting growth capacity(p.31)
- • Liability exposure from service disruptions and data breaches(p.46)
- • Significant infrastructure and operational disruptions(p.47)
- • Enforcement limitations on liability limitations in customer contracts(p.47)
- • Regulatory actions and penalties for past and future non-compliance(p.48)
- • Inadequate stamping of agreements limiting legal enforceability(p.49)
- • Inability to obtain or renew statutory permits and licenses(p.49)
- • Regulatory uncertainty regarding ESOP allotments to employees(p.49)
- • Competition law risks from acquisition-driven growth strategy(p.53)
- • COVID-19 pandemic impact on operations and customer demand(p.51)
- • Indian economic uncertainties and regional instability(p.54)
- • Inability to pass inflation-driven cost increases to customers(p.55)
- • Foreign investor restrictions limiting share demand(p.55)
- • Global economic slowdown and COVID-19 impact on IT spending(p.118)
- • Intense competition from larger global and Indian IT service providers(p.137)
- • IT talent shortage and rising employee attrition in emerging technologies(p.129)
- • Regulatory and compliance risks affecting global operations(p.121)
- • Foreign exchange volatility impacting USD-denominated revenues(p.134)
- • Novel Coronavirus pandemic impact on client operations and revenue(p.161)
- • Risk of uninsured losses exceeding insurance policy limits(p.163)
- • Regulatory compliance requirements across multiple jurisdictions(p.165)
- • FDI restrictions and regulatory conditions on foreign investment(p.170)
- • Currency and foreign exchange volatility affecting USD-denominated revenues(p.161)
- • Competition from established IT services providers(p.162)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ashok Soota | Promoter | 48.83% | — |
| Deepak Soota | Promoter Group | 0.03% | — |
| Kunku Soota | Promoter Group | 0.03% | — |
| Suresh Soota | Promoter Group | 0.02% | — |
| Usha Samuel | Promoter Group | 0.06% | — |
| Ashok Soota Medical Research LLP | Promoter Group | 12.80% | — |
| CMDB II | Investor Selling Shareholder | 19.43% | — |
| Ashok Soota | Promoter | 48.83% | 40.90% |
| Ashok Soota Medical Research LLP | Promoter Group | 12.80% | 12.22% |
| Ashok Soota | Promoter | — | — |
| Ashok Soota | Promoter | 48.83% | 46.33% |
| Ashok Soota | Promoter | 84.42% | — |
| Ashok Soota | Promoter/Executive Chairman | — | — |
| Ashok Soota | Promoter 1 | — | — |
| CMDB II | Investor 1 (formerly Canaan) | — | — |
Leadership
Ashok Soota · Promoter
Venkatraman Narayanan · Key Management Personnel
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Happiest Minds IPO FAQs
What is the lot size of Happiest Minds IPO?
The minimum lot size of Happiest Minds IPO is 90 shares. One lot costs ₹14,940 at the cut-off price.
When does Happiest Minds IPO open and close?
Happiest Minds IPO opened for subscription on 07 Sep 2020 and closed on 09 Sep 2020.
What is the listing date of Happiest Minds IPO?
Happiest Minds IPO listed on 17 Sep 2020.