The Rs 600-crore initial public offering of Latent View Analytics has seen a 6.38 times subscription, receiving bids for 11.18 crore equity shares against IPO size of 1.75 crore equity shares, on November 10, the first day of bidding.
The offer size has been reduced from 3.15 crore equity shares to 1.75 crore equity shares after the company mopped up Rs 267 crore from 34 anchor investors including HSBC, Hornbill Orchid India Fund, Abu Dhabi Investment Authority, Wellington India Opportunities Fund, Axis Mutual Fund, ICICI Prudential, Kotak Mutual Fund and Edelweiss Trusteeship on November 9.
Retail investors have put in bids for 31.62 times of the shares against their reserved portion and that of employees' portion was subscribed 1.24 times.
Non-institutional investors and qualified institutional buyers have put in bids of 2.42 times and 15 percent respectively for the offer.
The offer comprises a fresh issue of Rs 474 crore and an offer for sale of Rs 126 crore by selling shareholders. The fresh issue proceeds are going to be used for inorganic growth initiatives, working capital requirements of subsidiaries, and investment in subsidiaries.
Also read - Latent View Analytics IPO opens. 10 things to know before you subscribe
The offer closes on November 12 and the price band is at Rs 190-197 per share.
"The IPO is valued at 42.6x FY21 earnings and 43.7x FY22 annualized earnings, which look to be reasonably priced. Latent View states Happiest Minds Tech as its peer, which trades at an exorbitantly high valuation at 115x FY21 earnings," says Reliance Securities.
The brokerage further says, "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."
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The investment in digital technologies is expected to double from the 2020 levels to around $2.4 trillion in 2024 (around 16.5 percent CAGR).
"This presents an immense opportunity for Latent View, which may aid it to sustain a double-digit growth in subsequent years. Hence, we recommend subscribing to this issue," says Reliance Securities.
Incorporated in 2006, Latent View Analytics provides analytics services such as data and analytics consulting, business analytics & insights, advanced predictive analytics, data engineering, and digital solutions, to blue chip companies in technology, BFSI, CPG
& Retail, industrials, and other industry domains.
It has a presence across countries in the US, Europe, and Asia through its subsidiaries in the US, Netherlands, Germany, the UK and Singapore, and its sales offices in San Jose, London and Singapore.
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