Global data and analytics company Latent View Analytics makes it market debut on November 23, with analysts expecting the share to list at 150 percent premium over the issue price of Rs 197.
Analysts are upbeat on the listing following an overwhelming response as the Rs 600-crore public issue, the company’s strong financials, reasonable valuations and bright growth prospects.
"Latent View Analytics is set for a big bumper listing with the IPO subscribed whopping 326 times and trading at a 180 percent premium on the grey market,” said Sonam Srivastava, Founder of Wright Research.
“This IPO gives me a flashback to the Happiest Minds IPO not only listed at a 113 percent listing gain but is also up 600 percent even after the listing in 11 months."
A weak equity market, however, is a concern as the benchmark indices have fallen more than 6.5 percent from its record highs of October.
Bears went on a rampage on November 22 as well. The Sensex tanked 1,170 points to 58,466 and Nifty tumbled 348 points to close at 17,416.
A good listing may help lift the mood that has been soured by Paytm’s forgettable debut on November 18.
IPO a big hit
Latent’s public offer was subscribed 326.49 times during November 10-12, 2021, one of the biggest ever subscriptions for Indian markets.
The portion reserved for non-institutional investors was subscribed 850.66 times and that of qualified institutional buyers 145.48 times. Retail investors had put in bids 119.44 times the portion set aside for them and employees' portion was subscribed 3.87 times.
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Srivastava said Latent View would list at 42 times PE (price-to-earnings), while Happiest Minds is trading at a PE of 113.
"So we can expect the grey market premium to convert into listing day gains. Much like Happiest Minds, Latent View has enormous potential with its existing strong client and revenue base and presence in the global analytics and predictions industry," she said.
Latent View works in the coveted data analytics space on business analytics, advanced predictive analytics, data engineering, and digital solutions. It boasts of global blue chip clients and has worked with 30 of fortune 500 companies in the last three fiscals.
Its client base includes several marquee enterprises engaged in diverse industries, including Adobe, 7-Eleven, Uber Technology. The company provides services primarily to companies in technology, CPG and retail, industrials and BFSI segments.
As of September 2021, it was engaged by a US-based global software giant for over 10 years, by a multinational e-commerce corporation for over eight years and by an America-based global internet digital marketing and search giant for over five years, which shows how deeply embedded the company is in their daily workflows and decision-making processes, said Astha Jain of Hem Securities.
Latent View Analytics shares traded at Rs 547-557 in the grey market, at a 178-183 percent (Rs 350-360) premium over the issue price of Rs 197, as per the IPO Watch and IPO Central.
The stock has maintained a grey market premium of over Rs 300 since November 15.
The grey market is an unofficial platform where trading in IPO shares begin with the announcement of price band and continues till the listing of shares on the bourses. It is often used to get an idea of the listing price.
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"After witnessing a massive demand from investors for a niche player in data analytics servicing fortune500 companies globally, one can a expect bumper listing (at0 around Rs 500-550 levels, which translate to more than 150 percent premium," said Prashanth Tapse, VP Research at Mehta Equities.
Latent View issue appears to be reasonably priced when compared to listed comparable and followed by bright growing prospects focusing on this new-age digital solution including data analytics like AI and machine learning analytics companies, he said.
Amit Pamnani, Chief Investment Officer & DGM for Investment Banking at Swastika Investmart, expects Latent to list at two times the issue price.
Latent View Analytics raised Rs 600 crore through its public issue that included a fresh issue of Rs 474 crore and an offer for sale by Rs 126 crore.
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