HAPPIEST MINDS MAKES A STELLAR DEBUT ON BOURSES

MUMBAI: Shares of Happiest Minds Technologies Ltd more than doubled on their debut on Thursday, highlighting a resurgent equities market and increasing demand for software services firms during the coronavirus pandemic.

The strong listing also underscored growing investor appetite in a market which has surged more than 50% since the March lows, despite a record contraction in economic growth in the June quarter and India becoming one of the world’s worst-affected by the coronavirus pandemic.

Shares of Happiest Minds listed at ₹350, a whopping premium of 110.84% over its issue price of ₹166 per share. They climbed 137.92% during the day, hitting a high of ₹394.95 apiece on the NSE before closing at ₹370.95 apiece. A strong opening to the ₹702-crore initial public offering (IPO) was expected by investors and analysts given that it was subscribed 150.98 times last week. The company was founded in 2011 by Ashok Soota, a veteran of India’s software services industry having previously held leadership roles in Mindtree Ltd and Wipro Ltd.

The bumper listing of Happiest Minds Technologies Ltd has placed the Bengaluru-based company on par with some of the most lucrative listings in the last few years. Last year, state-run Indian Railway Catering and Tourism Corporation Ltd’s IPO which was subscribed 111.95 times gained 127.42% on listing. Supermarket chain Avenue Supermarts Ltd surged 114.30% while Astron Paper and Board Mill Ltd rallied 139.40% on their debut in 2017. According to analysts, a surge of new retail investors and their participation in primary markets have given confidence to promoters to go public after a brief lull in 2020 due to the pandemic.