The Rs 702-crore initial public offer (IPO) of IT services provider Happiest Minds Technologies continues to see strong subscription on Tuesday, the second day of the bidding.

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So far, the public issue of the Bengaluru-based company has been subscribed 7.75 times, having received bids for 18.03 crore equity shares as against IPO size (excluding anchor book) of 2.3 crore equity shares, according to the data available on the exchanges.

The reserved portion for retail investors was subscribed more than 36 times and that of non-institutional investors by 3.58 times. The reserved portion for qualified institutional investors was subscribed 9.7 percent subscription.

Read here: Happiest Minds Technologies IPO: Retail demand ensures full subscription on Day 1

The IPO, opened on September 7, Monday, with a price band at Rs 165-166 per share, will close on closes on September 9 and the shares will be listed on September 17.

IPO market picks up: Two in one week and more in the pipeline

The Rs 702 crore-IPO comprises of fresh issue of Rs 110 crore and an offer for sale aggregating upto 3.56 crore equity shares. This includes 84 lakh equity shares by the company’s promoter Ashok Soota and another 2.72 crore shares by CMDB II.

The company proposes to utilize the net proceeds from the fresh issue to meet long term working capital requirements and general corporate purposes.

Read here: Happiest Minds Technologies IPO opens today: Should you subscribe?

The company already raised Rs 316 crore through anchor investors' book on September 4. Some of the anchor investors included the Government of Singapore, Goldman Sachs, Kuwait Investment Authority, Nomura Funds Ireland, Jupiter India and Pacific Horizon Investment.

Read here: Happiest Minds raises Rs 316 crore through anchor investors ahead of IPO

“At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is comparable to larger mid-sized IT companies. We like the company given its strong presence in digital services, scalable business model with end-to-end capabilities and fast improving financial performance,” brokerage firm Motilal Oswal said in a report.

The brokerage suggests investors to Subscribe to the IPO saying that further considering market conditions and bright prospects for IT companies post Covid-era, one may also get listing gains.

First Published:Sept 8, 2020 2:12 PM IST