Latent View Analytics shares more than double on stock market debut

The ₹600 crore Latent View Analytics IPO included a new release of up to ₹474 crore and an offer for sale of up to ₹126 million. Price range for the offer was set at ₹190-197 per share. Prior to IPO, Latent View Analytics was increased ₹267 crore from anchor investors.

“The company saw a bumper response from the investors where the IPO was registered 326 times. The investors who have been awarded the allotment can face a stop loss of ₹450 and hold the stock with a long-term view, while the new investors have to seek a dip to buy the stock. It is the first of its kind to be listed on the Indian stock market without peer-to-app peers. So it has a first-mover advantage backed by strong management and fundamentals with increasing margins. There is a risk of sales concentration and sales growth has been muted for the past three years. However, the industry is expected to grow at a CAGR of 15-20% over the next 3 years, benefiting the company’s revenues,” said Parth Nyati, founder of Tradingo.

Proceeds from the new issuance will be used to fund inorganic growth initiatives, working capital requirements of the subsidiary, Latent View Analytics Corporation, and investments in subsidiaries to increase their capital base for future growth and general corporate purposes.

Latent View Analytics is one of the leading pure play data analytics services company in India. It provides services across the entire data analytics value chain, from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering, and digital solutions. In all sectors, data and analytics.

For the three months ended June 30, 2021 and June 30, 2020 and in fiscal fiscal years 2021, 2020 and 2019, US customer revenues represented 94.79%, 91.69%, 92.88%, 92.33 % and 90.91% of their turnover from operations in such periods, and turnover from customer operations in the United Kingdom represented 0.65%, 2.02%, 1.85%, 1.78% and 3, respectively, 75% of their turnover from operations during such periods.

Many brokers had recommended subscribing to the issue. “Latent View Analytics has a recognized leadership position in data and analytics with a wide range of capabilities, along with deep and deep-rooted relationships with blue chip customers across industries and geographies. The data and analytics industry in which the company operates looks promising given the future growth outlook with an expected CAGR growth of 18% in 2024 to $333 billion,” said Anand Rathi.

The company is available at the high end of the IPO price band at 42.6x its FY21 earnings attributable to post-issuance equity, and is claiming a market cap of Rs. 38,963 million. At the high end of the IPO price band the price is priced at a P/BV of 7.29x based on the NAV of Rs 27.02 as of June 30, 2021. The company has a healthy margin profile with a three-year average RoNW of 21.15%. the company’s plan for inorganic growth, long-term relationship with some of the Fortune 500 companies, because of their industry leadership, we recommend a “Subscribe” rating to this IPO,” the brokerage had said in a note. (with desk entrances)