Happiest Minds plunges over 8% after 8.3% equity changes hands – What should be your strategy now-

Shares of Happiest Minds Technologies dropped over 8% to an intra-day low during early trade on Tuesday as 1.27 crore shares, or 8.3% equity, worth Rs 1,076 crore, changed hands in a large trade at an average price of Rs 847 per share. The share price fell 8.69%, hitting an intra-day low of Rs 837.55 on the NSE.

On Monday, June 24, CNBC-TV18 reported that the IT firm’s promoter and executive chairman, Ashok Soota, had initiated a block deal to sell a 6% stake in the company, with the total offer size amounting to Rs 754 crore. 

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According to media reports, the floor price for the sale was set at Rs 826 per share, representing a 10% discount to the last closing price. Kotak Securities is the sole broker for the transaction. Sources added that there is a six-month lock-up period on the residual stake held by Soota.

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As of the end of the March quarter, the promoter and promoter group held a 50.24% stake in the company, according to data from the Bombay Stock Exchange (BSE).

Happiest Mind Q4FY24 performance

Additionally, Happiest Minds Technologies reported a 24.83% increase in consolidated net profit for the March quarter, reaching Rs 71.98 crore compared to Rs 57.66 crore in the same period the previous year. 

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Revenue from operations for the quarter stood at Rs 417.29 crore, up 10.4% from Rs 377.98 crore in Q4FY23. Annual profits rose by 7.53% to Rs 248.39 crore, compared to the previous fiscal’s Rs 230.99 crore.

Stock performance in last one year

In terms of stock performance, Happiest Minds Technologies faced a mixed bag of results. In the last month, the stock tried to secure positive returns at 5.65%, showcasing a modest upward movement. Contrastingly, the past six months were challenging, with the stock experiencing negative returns of 6.69%, indicating a period of decline.

Year-to-date figures continued in negative territory, depicting a decline of 6.16%. However, over the last twelve months, the stock continued to fall over 10%, disappointing the long term investors.

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