IT solution services provider Happiest Minds Technologies debuted on the bourses at a bumper premium of 111.4 percent over its IPO price on September 17.
The stock opened at Rs 351 on the BSE, against issue price of Rs 166 per share, while on the National Stock Exchange, it listed at Rs 350, up 110.8 percent.
At 10:01 hours IST, the stock was trading at Rs 384.15, up 131.42 percent over issue price and up 9.44 percent over opening price, with 24,30,192 volumes on the BSE, while it was up 130.36 percent at Rs 382.40 with 1,69,53,281 volumes on the NSE.
The hefty premium was on expected lines given the strong management background, fundamentals, focus on digital business and stellar subscription for its 702-crore IPO.
"Happiest Minds saw significant oversubscription of 151 times and has become one of the most successful IPO for the year 2020. Therefore, market participants are expecting a strong list for the stock," Yash Gupta - Equity Research Associate at Angel Broking told Moneycontrol.
Also Read: Happiest Minds IPO 8th most subscribed public issue of the last decade
Angel Broking remains positive on the long-term growth prospects of the company.
"Considering the very high exposure to digital services and strong promoter background and recent positive commentary by HCL Technologies, we expect that the company will continue to grow at a faster pace as compared to similar-sized companies. Therefore, investors with a long-term perspective can remain invested in the stock," Yash Gupta explained.
Happiest Minds raised Rs 702 crore via its public issue during September 7-9.
The IT company earned 97 percent of its revenue from digital offerings in FY20 and around 88 percent of the projects through agile delivery methodology. It has 148 active clients, out of which, 36 are Fortune 200 companies.
The company generates revenues from three business units - digital business services, product engineering services and infrastructure management & security services, which contributed 26 percent, 53 percent and 21 percent to the revenue reported in June quarter 2020.
Ashok Soota, the Executive Chairman and Director, is the promoter of the company. Soota was the founding chairman and MD of Mindtree and was also the vice-chairman of Wipro Ltd.