Happiest Minds Technologies, an IT services firm shares surged as much as to Rs 395 on BSE as compared to issue price of Rs 166. The Rs 702-crore initial public offering of Happiest Minds Technologies, promoted by Ashok Soota, garnered massive response from investors as it was subscribed a whopping 151 times. The issue had closed for subscription last Wednesday.
“Though valuation concerns persist for Happiest Minds after its strong listing, it has enough potential to be a long-term wealth creator,” analysts said The Economic Times.
Given the stellar listing, experts have advised booking profits in the counter to short-term traders, while medium to long-term investors can hold the scrip given the growth prospects of the company.
“Retail investors who applied for the purpose of listing gains can look to book profit post listing though we remain positive on the longer-term growth prospects of the company,” Yash Gupta – Equity Research Associate at Angel Broking told Moneycontrol.
Astha Jain, Senior Research Analyst at Hem Securities, also suggested holding on to the stock for the long-term if one got it on allotment. Though traders with a short-term horizon can partially exit the counter by selling up to 60 percent of their holding.
Ashok Soota is a pre-IPO interview to ETNow said Covid-19 has not given the company a ‘huge tailwind’ in terms of growth, and his company’s growth this year will not be like last year’s. That said, he expects the industry to recover next year.
Soota, a pioneer of India’s information technology services industry, has headed three outsourcing companies including one of the nation’s largest, Wipro Ltd., and taken two of them public.
“Happiest IPO might give an impressive return in the mid to long- term. Investors should hold stock at least for a few months, even if bought on the listing day,” Gaurav Garg, Head of Research at CapitalVia Global Research said according to a report by Moneycontrol.