Happiest Minds listing: Here’s what history & grey market are indicating

NEW DELHI: Happiest Minds is all set to get listed this week, probably on Thursday, Sep 17. The issue, which was sold between Sep 7 and Sep 9 in the price band of Rs 165-166, was subscribed 151 times.

In the past, some 20 issues with over 100 times subscription levels logged an average of 70 per cent listing gains at secondary market debut, data showed. The prevailing grey market premiums for the new kid on the block suggest a similar outcome for Happiest Minds.

What does history suggest?
Salasar Techno Engineering, whose Rs 36 crore IPO had been subscribed 273.10 times in July 2017, saw 139.95 per cent listing gains. The scrip opened at Rs 259.15 against the issue price of Rs 108. Apollo Micro Systems, whose Rs 156 crore issue had seen 248.5 times subscription in January 2018, saw a listing pop of 73.81 per cent over the issue price of Rs 275. The scrip got listed at Rs 478.

Three issues of 2017 -- Astron Paper & Board Mill (issue size of Rs 70 crore), Capacit'e Infraprojects (issue size of Rs 400 crore), and Central Depository Services (issue size of Rs 524 crore) -- saw listing pops of 128 per cent, 59.6 per cent and 67.78 per cent, respectively. All these issues had been subscribed 170-242 times.

Ujjivan Small Finance Bank (2019), Amber Enterprises India (2018), Religare Enterprises (2007) and Quess Corp (2016) saw listing gains of 56.76 per cent, 37.36 per cent, 75 per cent and 57.41 per cent, respectively. These issues were subscribed 144-166 times.

Last year's IRCTC listing delivered investors 101 per cent listing pop. The issue was subscribed 111.9 times. Avenue Supermarts in 2017 also delivered 102 per cent listing gain. This issue was subscribed 104.5 times.

Grey market premium
The basis of share allotment for Happiest Minds IPO is likely to be announced today. In the unofficial market for unlisted shares, the stock quoted a premium of Rs 142-146 per share on Monday, said Dinesh Gupta of Unlisted Zone, an outfit that deals in unlisted shares.

It suggests a listing price of Rs 308-312 (Rs 166 plus Rs 142-146) which would mean a listing gain of up to 88 per cent for retail investors who get share allottment.

For HNIs, at the upper price band limit of Rs 166 and 351.46 times subscription, a 7-day leverage at 7 per cent interest would add Rs 78.32 to the HNI cost. The break even for HNIs would be Rs 244 (Rs 166 + Rs 78.32). At the current grey market premium, an HNI would still make Rs 63.68-67.68 per share.