Shares of Happiest Minds rallied after reports suggested that founder Ashok Soota was in talks to sell a part of his promoter stake, reviving speculation that first emerged earlier this year
Shares of Happiest Minds rallied after reports suggested that founder Ashok Soota was in talks to sell a part of his promoter stake, reviving speculation that first emerged earlier this year. Happiest Minds’ shares surged 21.35 per cent to close at ₹407.60 on Monday, while the Nifty IT index gained 3.59 per cent to end at ₹29,015.85.However, a company statement submitted to the exchanges said that as part of its business strategy, it keeps exploring various strategic opportunities intended to be in the best interest of its stakeholders. Happiest Minds also declined to comment on media reports, noting that its shares are freely traded on the stock exchanges. The company added that it has disclosed, and will continue to disclose, all material events in compliance with SEBI’s listing regulations as and when required.Tushar Badjate, Director of Badjate Stock & Shares, explained that interest from global private equity firms and strategic buyers suggests the market is beginning to place a premium on scale, execution speed and specialised digital capabilities across the mid-tier IT sector.“Clients no longer view AI as a separate technology programme. They want it embedded across operations, customer engagement and decision-making. Mid-sized IT firms understand this opportunity, but building the required talent, IP and global distribution demands capital. Happiest Minds’ improved growth outlook, supported by its AI strategy, indicates that this may not be a distressed transaction, but a recognition that the next leg of growth may require a larger platform. More mid-tier IT promoters may confront the same trade-off as AI raises the cost of remaining competitive,” he said.in mature phaseMeanwhile, Pareekh Jain, founder and CEO, EIIR Trend, observed that as the IT services industry is entering a more mature phase, winning new deals has become more challenging. As a result, companies are increasingly looking at acquisitions to gain capabilities like access to new clients, geographies, industries, and service offerings.“Earlier, these companies commanded higher valuations, but uncertainty has led to a significant correction. Private equity firms were previously active in acquiring smaller IT services companies. However, they have shifted their focus towards AI companies, resulting in a further decline in valuations. This has left IT service providers as the primary acquirers of such firms,” he said.Over the past three to four months, cash-rich IT service providers with growth ambitions have become more aggressive in pursuing acquisitions, resulting in deals such as Coforge-Encora and Persistent-Nagarro. Many potential acquisition targets currently in the market are smaller firms with annual revenues of less than $500 million.Published on July 13, 2026
