Ashok Soota Reduces Stake in Happiest Minds by 6%, Gains Rs 763 Crore

Happiest Minds Technologies announced on Tuesday that its promoter and executive chairman, Ashok Soota, has sold a 6 per cent stake in the IT consulting firm through a bulk deal in the open market. According to exchange data, the shares were sold at an average price of Rs 834.87 each, amounting to a total deal value of Rs 762.77 crore.

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Following this transaction, Ashok Soota's shareholding in Happiest Minds Technologies has decreased from 50.13 per cent to 44.13 per cent. The company stated that this disclosure complies with the Securities and Exchange Board of India’s Substantial Acquisition of Shares and Takeover regulations.

Stake Sale Details

Ashok Soota sold 91,36,490 equity shares, representing a 6 per cent stake, on June 25, 2024. The buyers of these shares have not been identified yet. This sale follows a previous offloading by Soota in September last year when he sold a 1.11 per cent stake in the company.

In the previous quarter ending March 2024, Happiest Minds Technologies reported a consolidated net profit increase of 24.83 per cent, reaching Rs 71.98 crore. This is up from Rs 57.66 crore in the same period the previous year. Revenue from operations for this quarter was Rs 417.29 crore compared to Rs 377.98 crore in Q4FY23.

Market Reaction

On Tuesday, shares of Happiest Minds Technologies fell by 9.44 per cent, closing at Rs 830.45 each on the BSE. This decline followed the announcement of Ashok Soota's significant stake sale.

The company's recent financial performance shows robust growth despite the market reaction to the stake sale. The increase in net profit and revenue indicates strong operational performance.

The details regarding the buyers of Happiest Minds Technologies shares remain undisclosed at this time.

This significant transaction marks another instance of Ashok Soota reducing his stake in the company within a year.

The market will be closely watching how this development impacts Happiest Minds Technologies' future performance and investor sentiment.