Latent View Analytics IPO fully subscribed on Day 1: Here’s what brokerages have to say

Initial public offering (IPO) by the data and analytics firm Latent View Analytics got fully subscribed on the first day of subscription. The ongoing public offer has received bids for 3,82,70,256 shares till 11.48 am against 1,75,25,693 shares offered by the company, indicating an oversubscription of 2.27 times. The company has fixed a price band of Rs 190 to 197.

Investors can bid for a minimum of 76 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,972 at the higher end of the price band. A retail investor can at max apply for 13 lots or 988 shares for Rs 1,94,636. The issue will close on November 12.

Latent View Analytics is a pure-play data analytics services company in India. According to the company, it provides expertise on the entire value chain of data analytics from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions. The firm also provides services to bluechip companies in technology, BFSI, CPG & retail, industrials and other allied sectors. Some of the key clients it works include Adobe, Uber Technology and 7-Eleven.

Here’s what brokerages have to say about Latent View's IPO.

Reliance Securities: Subscribe

Brokerage Reliance Securities has a ‘Subscribe’ rating on the issue. “The IPO is valued at 42.6 times FY21 earnings and 43.7 times FY22 annualised earnings, which look to be reasonably priced. Latent View Analytics states Happiest Minds Tech as its peer, which trades at an exorbitantly high valuation at 115 times FY21 earnings. Notably, the growth in IT spend is expected to be largely driven by investments in digital technologies, as enterprises scale up digital transformation efforts across business units.”

Hem Securities: Subscribe

The brokerage said that the company has recognised leadership position in data and analytics with a wide range of capabilities and has deep and entrenched relationships with bluechip clients across industries and geographies. “We like scalable and attractive financial profile of the company with strong leadership team guiding capability development and go-to-market strategy. Hence, we recommend “Subscribe” on the issue for both listing gain and long-term purpose,” the brokerage said.

Anand Rathi Share and Stock Brokers: Subscribe

Anand Rathi Share and Stock Brokers said that the data and analytics industry in which the company operates looks promising considering future growth prospects with an expected CAGR growth of 18 per cent by 2024 to $333 billion.

“The company has a healthy margin profile with three years average return on the net worth of 21.15 per cent. Considering the company’s plan for inorganic growth, longstanding relationship with some of the fortune 500 companies, its leadership position in the industry, we recommend a “Subscribe” rating to this IPO,” the brokerage said in a report.

HDFC Securities: Not rated

HDFC Securities said that Latent View’s business model is supported by stable and recurring revenues, significant operating leverage and low capital requirements that contribute to a healthy free cash flow. Its high levels of client retention and shift toward multi-year engagement contracts result in a high degree of revenue visibility.

Also Read: Nykaa makes strong market debut, stock lists at 79% premium to issue price

Also Read: PharmEasy files for Rs 6,250 crore IPO; may raise Rs 1,250 crore before listing