IT outsourcing company Happiest Minds Technologies will come out with its IPO on September 7.

The public issue consists of a fresh issue of ₹110 crore and an offer for sale of up to 3.57 shares. The Bengaluru-based firm, founded by IT industry veteran Ashok Soota, has fixed the price band at ₹165-166 a share for its public issue, which will end on September 9.

Soota, the promoter, is looking to sell 84.14 lakh shares, and investor CMDB II, which owns 19.4 per cent in Happiest Minds, is looking to exit after the IPO. CMDB II is a private equity fund managed by JP Morgan Investment Management Inc.

The remaining is owned by Employee Trust and others. The company aims to raise ₹702 crore via public issue, and the issue will open for anchor investors for a day on September 4.

ICICI Securities and Nomura Financial Advisory and Securities (India) are the book-running lead managers to the offer, while KFin Technologies is the registrar to the public issue. Bids can be made for a minimum of 90 shares. The previous IPO in the IT outsourcing segment was by L&T Infotech in 2016.

This is the second company Soota is taking public . Soota was the co-founder of Mindtree which went public in 2000. In 2011, Soota left Mindtree and co-founded Happiest Minds.

Happiest Minds has EBITDA margins in the range of 24-25 per cent for the year and despite the Covid-19 uncertainties it is confident of growing its business. “Around 97 per cent of our revenues comes from digital and with global IT spends in emerging tech areas is projected to grow 20 per cent this year,” said Soota. In fiscal 2020, Happiest Minds reported revenues of ₹698.2 crore, a, 18.2 per cent growth when compared to ₹590.3 crore posted in fiscal 2019. Interestingly, Mindtree went public when it had revenues in a similar range.