The IPO rush continues this week as another company Latent View Analytics' initial public offering (IPO) opened for public subscription today, witnessing a massive demand from retail investors. The three-day issue will conclude on November 12 and the price band has been fixed at ₹190-197 per share.
At the end of Day 1 of bidding, Latent View IPO was oversubscribed 6.39 times with high demand from retail investors as the category was booked 32 times, BSE data showed. Non Institutional Investors (NIIs) bid 2.42 times and QIBs 0.15 times.
The IPO comprises fresh issue of equity shares worth ₹474 crore and an offer of sale of equity shares to the tune of ₹126 crore by a promoter and existing shareholders. The company provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions.
As per market observers, Latent View Analytics shares are available at a premium (GMP) of ₹230 in the grey market today. Analysts believe Latent View Analytics IPO provides an opportunity to invest in a pure-play analytics company.
“We believe Latent view has distinctive product offerings, relevant experience and capabilities to manage customers which aid in driving the company’s revenue and operating efficiencies. Going ahead, the company’s strategy is to put efforts towards innovation, adopt a focused go-to-market strategy to gain visibility, strengthen client base and expand geographic presence. Also, it intends to expand via inorganic growth opportunities. On the financial front, the company’s performance is decent. From a long term perspective, we have a positive view on the company," said Religare Broking in a note.
Proceeds from the fresh issue will be used for funding inorganic growth initiatives, working capital requirements of the subsidiary LatentView Analytics Corporation, and investment in subsidiaries to augment their capital base for future growth and general corporate purposes.
“Latent View provides niche solutions which are mostly in the Descriptive and Diagnostic solutions and Predictive analytics segments. These are expected to grow faster than the overall Data & Analytics market. The company is raising fresh capital and already has around ₹300 crore in cash which can aid in chasing growth. Hence on a forward basis, the valuations are quite attractive and hence we recommend SUBSCRIBE on the issue," said Milan Desai, Lead Equity Analyst, Angel One Ltd.
