Latent View Analytics, a data analytics firms, made a stellar debut on the stock market on Tuesday. Latent View Analytics stock was listed at Rs 530 on BSE, a hefty premium of 169.04 per cent over its issue price of Rs 197. On NSE, Latent View Analytics scrip got listed at 512.20, a premium of 160 per cent.
Latent View Analytics IPO comprised fresh issue of equity shares worth Rs 474 crore and an offer-for-sale of equity shares worth Rs 126 crore by a promoter and existing shareholders. The price band for Latent View Analytics was fixed at Rs 190-197 a share.
Latent View Analytics IPO received a stellar response from the investors when it had opened for subscription earlier this month. The Rs 600-crore public issue was subscribed 326.49 times, one of the biggest subscriptions for the Indian market. The portion reserved for non-institutional investors was subscribed 850.66 times while the quota set aside for qualified institutional buyers was booked 145.48 times. Retail investors had put in bids 119.44 times.
The proceeds from the fresh issue of shares will be used to fund inorganic growth initiatives, working capital requirements, and general corporate purposes.
For investors, Ravi Singh, VP & head of research, Share India, said, “After looking the company’s business model is supported by stable and recurring revenues, significant operating leverage and overall valuations , we advice investors to book profit on the listing day and remain cautious as over all market sentiment is negative.”
Ahead of the listing, Latent View Analytics shares fetched a whopping premium of Rs 350-360 in the grey market, at a 178-183 per cent premium over the issue price of Rs 197, as per the IPO Watch and IPO Central. Latent View Analytics IPO unlisted share has maintained a grey market premium of over Rs 300 since November 15.
“Small size issues that got a robust subscription may revive sentiments in the primary market after the Paytm listing.Owing to robust subscription across categories, a stellar debut is expected for Latent View Analytics and we may see a listing above Rs 450-500,” said Abhay Doshi, co-founder of Unlisted Arena.
“On the valuation front, the issue looks priced on the higher side at an asking PE of 38x. However, the company enjoys a 34 per cent EBITDA margin, which is working in its favour,” he further added.
Latent View reported revenues of Rs 326 crore in the year 2020-21 with net profit of Rs 91 crore. According the prospectus, the analytics services market is expected to average an annual compounded growth rate 19 percent and poised to touch approximately $68 billion in 2024. It is a data analytics firm, delivering solutions that help companies drive digital transformation and use data to gain a competitive advantage. Venkatraman owns 69.63 per cent stake in the company at present, Koteeswaran holds 7.74 per cent stake and Hariharan owns 9.67 percent holding in the firm.
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