Latent View Analytics may see bumper listing on Tuesday; check grey market premium

Data analytics services firm Latent View Analytics may witness a stellar debut on the bourses on Tuesday. Shares of the company traded at a premium of Rs 290 in the unlisted market in the afternoon trade on Monday, indicating a gain of over 145 per cent on debut.

 

The initial public offering (IPO), which was opened for subscription on November 10, was subscribed 326.49 times on the last day of the bidding process on November 10. The company had fixed a price band of Rs 190-197 for the IPO.

 

Commenting on the grey market premium, Abhay Doshi, founder of UnlistedArena.com, said, "Premium of Latent View Analytics stands at around Rs 290 in the unlisted market. The sentiments of primary markets have shunned amid blunder of Paytm listing, but it is expected that small size issues which got robust subscription may revive the sentiments.”

 

"On the valuation front, the issue looks priced at a higher side at asking price to earnings (PE) ratio of 38 times. However, the company enjoys 34 per cent EBITDA margins which is working in their favour. Owing to robust subscription in all categories, a stellar debut is expected for latent view and we may see listing above Rs 450-500," Doshi added.

 

The Rs 600-crore IPO had received bids for 572.18 crore shares against 1.75 crore shares offered by the company, data available with the NSE showed.

 

The portion for non-institutional investors was subscribed 850.66 times. Qualified Institutional Buyers (QIBs) put in bids for 145.48 times during the IPO, while the portion for retail individual investors was subscribed 119.44 times on the final day.

 

Most of the brokerages had given 'Subscribe' rating for the issue. Sharing its views on the IPO, Anand Rathi Share and Stock Brokers said, "The company is available at the upper end of the IPO price band at 42.6 times its FY21 earnings attributable to post issue equity, demanding a market cap of Rs 3,896.3 crore. At the upper end of the IPO price band, the issue is priced at a price-to-book value of 7.29 times based on its NAV of Rs 27.02 as of June 30, 2021. Latent View has a healthy margin profile with three years average return on net worth of 21.15 per cent."

 

Considering the company's plan for inorganic growth, long-standing relationship with some of the Fortune 500 companies, and its leadership position in the industry, Anand Rathi gave a ‘Subscribe’ rating to the public offer.

 

Recently, microcrystalline cellulose maker Sigachi Industries also doubled investors' wealth on its debut on November 15. The stock was listed at Rs 575, a 253 per cent premium over its issue price of Rs 163.

Also Read: Latent View Analytics IPO set to double investor wealth during November 23 listing

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