Latent View Analytics IPO Fully Subscribed On Day 1. Check What Brokerage Houses Say

The initial public offering of Latent View Analytics, which raised Rs 267 crore from anchor investors, got subscribed by 1.5 times so far on the first day of the bidding process on Wednesday.

The company's Rs 600-crore initial public offering (IPO) received bids for 2.62 crore equity shares, against an IPO size of 1.75 crore shares, a subscription of 1.5 times till 10.54 am, data with NSE showed.

On Tuesday, the company decided to allocate a total of 13,553,898 equity shares to 34 anchor investors at Rs 197 apiece, amounting to a transaction size of Rs 267 crore.

Abu Dhabi Investment Authority, Ashoka India Equity Investment Trust Plc, Axis Mutual Fund (MF), ICICI Prudential MF, Aditya Birla Sun Life MF, Edelweiss MF, SBI Life Insurance Company and Bajaj Allianz Life Insurance Company are among the anchor investors, according to a circular uploaded on BSE website late evening on Tuesday.

The IPO comprises fresh issue of equity shares worth Rs 474 crore and an offer-for-sale of equity shares to the tune of Rs 126 crore by a promoter and some existing shareholders.

As a part of the offer-for-sale, promoter Adugudi Viswanathan Venkatraman will offload shares worth Rs 60.14 crore, shareholder Ramesh Hariharan will sell Rs 35 crore shares and Gopinath Koteeswaran will offload Rs 23.52 crore shares among others.

The issue, with a price band of Rs 190-197 a share, opens for public subscription on November 10, and will conclude on November 12.

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.

The company said that up to 75 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

The company provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions.

This is what indutsry exoerts have to say about IPO:

Anil Singhvi, Managing Editor, Zee Business

Singhvi has given big thumbs to this issue and has recommended to apply for big listing gains and with long term vision in this IPO. Good track record of promoters with no litigations, new age business with a strong growth outlook and strong financial and profitability works well for this IPO, he said.

Religare Broking

The brokerahe house belives that Latent view has distinctive product offerings, relevant experience and capabilities to manage customers which aid in driving the company’s revenue and operating efficiencies, accoridng to Mint.

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.

Milan Desai, Lead Equity Analyst, Angel One Ltd

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 Rs 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.

(With PTI Inputs)