BENGALURU: Shares of India’s Happiest Minds Technologies Ltd greater than doubled of their inventory market debut on Thursday, underscoring robust investor curiosity in IT companies corporations through the COVID-19 pandemic.
The inventory opened at 350 rupees, nicely above its preliminary public providing (IPO) value of 166 rupees that valued the corporate at about 24.four billion rupees ($331 million). At its excessive of 394.95 rupees, the corporate was valued at 58 billion rupees.
Exchange knowledge confirmed traders had bid for almost 151 instances the variety of shares on provide from the corporate led by Ashok Soota, a veteran of India’s almost $200 billion IT trade who additionally co-founded bigger agency Mindtree Ltd. Soota can also be Happiest Minds’ high particular person shareholder.
The Bengaluru-based firm derives 97% of its income from fast-growing digital IT companies – reminiscent of analytics and synthetic intelligence- and cloud-enabled companies – in contrast with 30%-50% for conventional Indian IT companies friends, analysts at Motilal Oswal estimated this month.
“Investors are realising the resilience of the sector as well as strong demand for IT, post the COVID-19 crisis,” Sneha Poddar, an analyst at Motilal Oswal stated on Thursday.
“The fact that Happiest Minds comes from a strong management background also acts as a key positive … as people have seen how Mindtree has performed.”
In the yr ended March 2020, Happiest Minds’ income jumped 18% to just about 7 billion rupees, IPO paperwork confirmed, whereas it reported a revenue of 717 million rupees, about 5 instances as a lot as a yr earlier.
India’s IT shares have been among the many few sectors to clock beneficial properties in 2020, gaining 28% up to now this yr.
The Indian inventory market has seen solely a handful of IPOs this yr in contrast with greater than a dozen in 2019, because the coronavirus disaster hammered threat urge for food. The extremely awaited itemizing of SBI Cards and Payment Services Ltd, the yr’s greatest, obtained a tepid response in mid-March.
($1 = 73.7400 Indian rupees)
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