Shares of Happiest Minds Technologies Ltd. fell nearly 3.5 percent on Tuesday, even as the IT firm announced successfully raising Rs 500 crore ($61 million) through a Qualified Institutions Placement (QIP) of equity shares.

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This was the first-ever equity capital raised by the company after its initial public offering (IPO) in 2020.

The issue attracted a robust response from institutional investors, Happiest Minds Technologies said in a filing to the stock exchanges on Tuesday.

Happiest Minds' fund-raising committee of the board of directors of the IT firm, at its meeting on July 14, approved the allotment of 54.11 lakh equity shares of face value Rs 2 to eligible investors at a price Rs 924 per share.

The proceeds of the issue will primarily be used for funding working capital requirements, investments in subsidiaries, funding inorganic growth, and other general corporate purposes, according to the company.

"This raise of ‘growth capital' is a key step towards our strategy to drive business growth and success in the coming years," Venkatraman Narayanan, MD, and CFO, of Happiest Minds Technologies said.

Happiest Minds Technologies, a digital transformation and IT consulting company, posted a consolidated income of Rs 1,450 crore and a profit after tax (PAT) of Rs 231 crore for the financial year 2023.

Last month, in an interview with CNBC-TV18, Narayanan said that the IT firm is facing staffing issues in terms of getting people and ramping up to the required numbers.

Shares of Happiest Minds are trading 3.4 percent lower at Rs 961.10.