Shares of Latent View Analytics today made a strong debut on exchanges, surging to ₹531 in early trade as compared to issue price of ₹197. The IPO of Latent View Analytics Limited was the most successful ever IPO in terms of number of times subscribed. The issue had received overwhelming response from all categories of investors and got subscribed a whopping 326 times. The retail individual investors (RIIs) segment was subscribed nearly 120 times while the category for non-institutional investors was subscribed a massive 850.66 times while the portion for Qualified Institutional Buyers (QIBs) 145.48 times.
The ₹600 crore Latent View Analytics IPO comprised a fresh issue of up to ₹474 crore and an offer for sale of up to ₹126 crore. Price range for the offer was fixed at ₹190-197 per share. Ahead of the IPO, Latent View Analytics had raised ₹267 crore from anchor investors.
“The company saw a bumper response from the investors where the IPO got subscribed 326 times. The investors who got the allotment can put a stop loss of ₹450 and hold the stock with a long-term view, while the new investors should look for a dip to buy the stock. It is the first of its kind to get listed in the Indian stock market with no apple to apple peers. So it has a first-mover advantage which is backed by strong management and fundamentals with increasing margins. There is a risk of revenue concentration and the revenue growth has been muted in the last three years. However, the industry is expected to grow at a CAGR of 15-20% in the next 3 years which will aid the company’s revenue,” said Parth Nyati, founder of Tradingo.
Proceeds from the fresh issue will be used for funding inorganic growth initiatives, working capital requirements of the subsidiary Latent View Analytics Corporation, and investment in subsidiaries to augment their capital base for future growth and general corporate purposes.
Latent View Analytics is among the leading pure-play data analytics services companies in India. It offers services across the entire value chain of data analytics from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions. Across industries, data and analytics.
In the three months ended June 30, 2021 and June 30, 2020 and in fiscals 2021, 2020 and 2019, revenue from operations from clients in the United States represented 94.79%, 91.69%, 92.88%, 92.33% and 90.91% of their revenue from operations in such periods, respectively, and revenue from operations from clients in United Kingdom represented 0.65%, 2.02%, 1.85%, 1.78% and 3.75% of their revenue from operations in such periods, respectively.
Many brokerages had recommended subscribe to the issue. “Latent View Analytics has recognized leadership position in data and analytics with a wide range of capabilities along with deep and entrenched relationships with blue chip clients across industries and geographies. The data and analytics Industry in which the company operates looks promising considering future growth prospects with expected CAGR growth of 18% by 2024 to $333 billion,” said Anand Rathi.
“The company is available at the upper end of the IPO price band at 42.6x its FY21 earnings attributable to post issue equity, demanding a market cap of Rs. 38,963 million. At the upper End of the IPO price band, the issue is priced at a P/BV of 7.29x based on its NAV of Rs. 27.02 as of June 30, 2021. The company has a healthy Margin profile with three years average RoNW of 21.15%. Considering the company’s plan for inorganic growth, longstanding relationship with some of the Fortune 500 companies, its leadership position in the industry, we recommend a “Subscribe” rating to this IPO,” the brokerage had said in a note. (With Agency Inputs)
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