Shares of Happiest Minds Technologies surged over 9% in Friday’s session as reports emerged that private equity firms EQT and Partners Group, along with ITC Infotech, are exploring the acquisition of a controlling stake in the company. The sharp move reflects investor interest following potential deal speculation around promoter stake dilution.
According to reports, these firms are evaluating the possibility of acquiring a significant stake from founder and chairman Ashok Soota, who holds around 44% in the company. The promoter group’s stake was valued at approximately Rs 2,500 crore as of Thursday.
Sources indicated that discussions are currently at an early stage, with due diligence reportedly underway. A commercial due diligence report is expected to be shared with interested bidders in the coming weeks, though there is no certainty that a deal will materialise, as valuation negotiations remain a key factor.
At a post-earnings press conference in February, Ashok Soota had stated that the company remains focused on its artificial intelligence initiatives and that he continues to be “very much at the helm,” indicating no immediate confirmation of stake sale intentions.
Industry context and financial performance
The development comes amid broader consolidation trends in the IT services sector, where mid-sized firms are increasingly becoming attractive acquisition targets due to valuation corrections. Over the past year, Happiest Minds shares have declined more than 40%.
For the October–December 2025 quarter, the company reported a 10% year-on-year increase in revenue to Rs 587 crore, while net profit declined 20% to Rs 40 crore. The company has also outlined plans to double its AI workforce from 500 and has set a revenue target of $1 billion by FY31.
Stock performance
As of Friday, March 20, Happiest Minds shares were trading at Rs 406.60, up 9.40% for the day, placing the stock among the top gainers in early trade.
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