Latent View Analytics is a leading data analytics service provider. It kicks off the first-day trade with an unexpected and massive 169% premium on the bourses.
The stock of Latent View Analytics opened at Rs 530 on the BSE and the opening tick on the NSE was Rs 512.20, against the issue price of Rs 197 per share. It instantly changed the mood at Dalal Street that was spoiled by the disappointing listing of the leading digital payments platform, Paytm.
While Experts had speculated the listing premium of more than 150% over the issue price, the grey market premium was around 180%, way higher than their expectation. Reasonable valuations, healthy financials, strong growth prospects, and friendly relationships with blue-chip companies supported the stock price.
The IPO of Latent View Analytics had seen a great response from buyers, subscribing 326.49 times on 10 – 12th November. While Non-institutional investors had put in bids 850.66 times the portion set aside for them, qualified institutional buyers bought shares 145.48 times the reserved portion.
Retail buyers also looked aggressive and subscribed for shares 119.44 times the portion set aside for them. Also, the employees’ portion was subscribed 3.87 times, serving a huge turning point of Latent View.
The company, providing services to blue-chip companies in CPG & Retail, Technology, BFSI, and other industry domains, has gone up to Rs 600 crore through its maiden public issue.
The offer was composed of a fresh issue of Rs 474 crore and an offer for sale by selling shareholders. The experts had suggested subscribing to the public issue in order to promote healthy growth in the global data & analytics market in the future.
It is speculated that the global data & analytics market will continue to grow at a CAGR of 18% from $174 billion in FY20 to $332.6 billion by FY24.
Asit C Mehta had recently conveyed a message to all investors out there. He said “Across industries, data and analytics are being leveraged by enterprises to guide business strategy and optimize spending decisions. Latent View is counted amongst the prominent pure-play data analytics services companies in India. At the upper price band of Rs 197, the stock trades at 43.68x its FY22E EPS of Rs 4.51/-. Hence, we recommend subscribing to the issue from a long-term perspective”.
Choice Broking had also assigned a ‘subscribe’ rating for the issue after keeping in mind the attractive valuations and bright future.
The brokerage also claimed that “At a given price range of Rs 197, Latent View Analytics is at a great discount to its sole peer company. However, the demanded valuation is at a premium to sector P/E multiple. We feel that there will be a significant demand for pure-play analytics companies like Latent View in the future for offering such outstanding services.”
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