Happiest Minds Technologies Ltd

About the Company:

Happiest Minds Technologies Ltd is positioned as “Born Digital. Born Agile”, we focus on delivering a seamless digital experience to our customers.

Company’s offerings include, among others, digital business, product engineering, infrastructure management and security services. Our capabilities provide end-to-end solution in the digital space.

Company offer solutions across the spectrum of various digital technologies such as Robotic Process Automation (RPA), Software-Defined Networking/Network Function Virtualization (SDN/NFV), Big Data and advanced analytics, Internet of Things (IoT), cloud, Business Process Management (BPM) and security.

In Fiscal 2020, 96.9% of our revenues came from digital services. This is one of the highest among Indian IT companies.

As of March 31, 2020, company had 157 active customers. In Fiscal 2020, company delivered 87.9% of our projects through agile delivery methodology.

As of March 31, 2020, we had 2,666 personnel comprising 2,455 full-time employees and 211 contract workers.

Company’s business is divided into the following three Business Units (BUs):

Digital Business Services (DBS).
Product Engineering Services (PES).
Infrastructure Management & Security Services (IMSS).

Company’s Facilities & Capacity: (As of March 31, 2020)

Company’s business units are supported by the following three Centres of Excellence (CoEs):

Internet of Things (IoT):

Company’s IoT offering includes consulting led digital strategy creation, device/edge/platform engineering, end-to-end system integration on industry standard IoT platforms, IoT security, and IoT enabled managed services.In Fiscals 2019 and 2020, revenues from IoT offerings were 8.4% and 9.8% respectively.

Analytics / Artificial Intelligence (AI):

Company’s analytics/AI offering includes implementation of advanced analytics using artificial intelligence, machine learning and statistical models, engineering big data platforms to deal with large volume of data, modernization of data infrastructure and process automation through AI.

In Fiscals 2019 and 2020, revenues from analytics/AI were 9.1% and 11.6% respectively.

Digital Process Automation (DPA):

Company’s DPA offering includes consulting led digital transformation through process automation of core business applications, leveraging various intelligent process automation tools and technologies including Robotic Process Automation (RPA), intelligent business process management (iBPMS). In Fiscal 2020, revenue from DPA was 20.7%.

Company’s Customers:

Happiest Minds Technologies has a diversified customer base and have served more than 350 customers globally over the years.

As of March 31, 2020, company had 157 active customers and have helped customers operating in diverse industries including Edutech, HiTech, retail, BFSI, and manufacturing/ industrials.

International Operations:

In addition to our facilities in India, we are present in the United States, Canada, United Kingdom, Australia, Netherlands and Middle East. Company’s revenues are primarily generated from three main geographic markets: USA, India and UK.

Company’s Revenue Breakup from Various Business Segments:

Management Team:

Mr. Ashok Soota (Designation: Executive Chairman & Director)
Mr. Venkatraman Narayanan (Designation: Executive Director & Chief Financial Officer)

Objectives of the Issue:

Offer for Sale: (Rs. 592 cr)

Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale, net of their respective portion of the Offer related expenses.

Fresh Issue (Rs. 110 cr)

To meet long term working capital requirement.
General corporate purposes

Positives for the Company:

Repeat Business from Clients:

Company has repeat business from our customer base, which includes more than 37 Fortune 2000 / Forbes200 / Billion $ corporations. Company’s broad range of offerings helps us to up-sell and our multiple BUs help us to cross-sell to our existing customers as well as to acquire new customers.
The average revenue per customer has increased from USD 471,472 in Fiscal 2018, to to USD 614,675 in Fiscal 2020.

Revenue from Customers based on Location:

Financials of the Company: (Consolidated)

(in Crores)	FY 18	FY 19	FY 20
Revenue	489.1	601.8	714.2
Net Profit	(-22.4)	14.2	71.7

IPO Details:

Details	Info
Issue Opens on	7th September 2020
Issue Closes on:.	9th September 2020
Issue Price	Rs.165 – 166
Face Value	Rs.2
Minimum Lot	90 Shares
Retail Category Allocation	10%
Minimum Investment	Rs.14,940
Issue Constitutes	36.93%
Issue Size	Rs.702 cr ($96 million)
Market Cap	Rs.1900 cr ($262 million)
Listing at	NSE & BSE
Equity Shares Offered (Fresh)	66,26,506
Equity Shares Offered (OFS)	3,56,63,585
Total Equity Shares Offered (Fresh + OFS)	4,22,90,091
Equity Shares Prior to the Issue	10,78,62,479
Equity Shares after the Issue	11,44,88,985

Important Dates:

Finalization of Basis of Allotment	on or Before 14th September 2020
Initiation of Refunds	on or Before 15th September 2020
Credit of Equity Shares:	on or Before 15th September 2020
Listing Date:	on or Before 17th September 2020

Subscription Details: (Will be Updated)

(Subscription-Category-Wise (no. of times) Till time : 05:00 PM)	Shares Offered	Day-1	Day-2	Day-3
QIB	1,26,87,028	0.08	0.47	77.44
NII	63,43,513	0.62	3.91	351.46
Retail	42,29,009	14.61	38.8	70.94
Employee	——	——	—-	—-
TOTAL	2,32,59,550	2.87	8.38	150.9

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
5.36	30.9	27.1%	26.0

Company Contact Info:
Happiest Minds Technologies Limited #53/1-4, Hosur Road Madivala (Next to Madivala Police Station) Bengaluru – 560 068 Karnataka, India Telephone: +91 80 6196 0300 / +91 6196 0400; E-mail: investors@happiestminds.com; Website: www.happiestminds.com

IPO Registrar Info:
KFin Technologies Private Limited Karvy Selenium Tower B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda Hyderabad – 500 032, India Telephone: +91 40 6716 2222 E-mail: happiestminds.ipo@kfintech.com Website: www.kfintech.com