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Shares of Happiest Minds Technologies experienced a significant decline in morning trading on Tuesday, plummeting by 9.5 percent following a substantial block deal valued at ₹1,076 crore. This transaction involved the transfer of approximately 1.27 crore shares, representing 8.3 percent of the company's equity, at an average price of ₹847 per share.
While the identities of the buyers and sellers in this block deal remain undisclosed for the moment, earlier media reports suggested that Ashok Soota, the promoter and executive chairman of Happiest Minds, was likely to dispose of a 6 percent stake in the company through this mechanism. These reports indicated that the total offer size for the deal was estimated at around ₹754 crore, with a floor price set at approximately ₹826 per share. This floor price reflected a 10 percent discount to the stock's closing price on the previous trading day. Kotak Securities was appointed as the sole broker for this transaction.
The stock's value plunged to its day's low of ₹830.20, marking a 9.5 percent drop. This decline positions the stock over 18 percent below its 52-week high, which was achieved on July 17, 2023. However, it has experienced a 12.5 percent increase from its 52-week low of ₹738.05, reached on March 28, 2024.
Over the past year, the scrip has exhibited a 4 percent decline, and its year-to-date performance in 2024 shows a drop of over 7 percent. Nevertheless, the stock has displayed a remarkable surge of more than 16 percent in June so far, following a 3 percent dip in May. April saw the stock gain over 9 percent. Earlier in the year, the stock faced negative performance, experiencing a 12 percent drop in March, a 3 percent decline in February, and a 2 percent dip in January.
A lock-up period imposed on Ashok Soota's remaining stake will prevent him from selling any additional shares for the next six months. This restriction serves to ensure that Soota cannot offload more shares during this period, thereby providing a sense of stability to the stock and instilling confidence among investors that there will be no immediate further selling pressure from the promoter.
Happiest Minds Technologies reported a notable 24.83 percent increase in its consolidated net profit for the quarter ending March 2024, reaching ₹71.98 crore compared to ₹57.66 crore in the same period the previous year, according to a regulatory filing. The company's revenue from operations for the quarter stood at ₹417.29 crore, representing a 10.4 percent rise from ₹377.98 crore in Q4FY23.
For the entire fiscal year, the company's profits grew by 7.53 percent, reaching ₹248.39 crore compared to ₹230.99 crore in the previous year. These figures suggest that the company's financial performance remains relatively robust, despite the recent stock market fluctuations.