Happiest Minds Technologies' shares more than doubled in value in its equity market debut on Thursday, a week after the IT company's IPO or initial public offering was subscribed 150.98 times. The stock of Happiest Minds Technologies listed at Rs 350 apiece on the National Stock Exchange (NSE), marking a premium of 110.84 per cent compared to its issue price of Rs 166. Happiest Minds shares quoted at Rs 394.95 apiece on the bourse at the strongest level of the session, before settling at Rs 370.95.
Happiest Minds' is the most successful public offer so far this year. The IPO opened for subscription from September 7 to September 9, at an issue price of Rs 165-166 per share. Happiest Minds plans to utilise the proceeds for its working capital requirements and general corporate purposes.
Last week, cloud communication platform provider Route Mobile's IPO was subscribed 73.29 times. Prior to that, textiles specialty chemical maker Rossari Biotech's IPO in July was lapped up 79.37 times. The weakest IPO of the year so far is of SBI Cards and Payment Services, which was subscribed 26.22 times in March.
Analysts say after the blockbuster listing of Happiest Minds, those looking to go long on the stock should wait for some correction.
"Happiest Minds has a good promoter group and that is a positive for the stock. However, in terms of business profile, it is just like any other mid-cap IT company, and its valuations look stretched post-listing," Sandip Sabharwal, a Mumbai-based investment advisor and fund manager, told NDTV.
"The scarcity premium could still play out, however investors should wait for dips before buying," he said.
Bengaluru-based Happiest Minds is a provider of services including Big Data Analytics, Artificial Intelligence and cognitive computing, Internet of Things, cloud, security, blockchain and automation, according to its website. Besides India, the company has operations in the US, the UK, Canada, Australia and the Middle East.