Data analytics services provider Latent View Analytics started off the first day trade with a massive 169 percent premium on the bourses on November 23, which was largely on expected lines.
The stock opened at Rs 530 on the BSE and the opening tick on the National Stock Exchange was Rs 512.20, against issue price of Rs 197 per share, changing the mood at Dalal Street that was spoiled by the disappointing listing of Paytm, the leading digital payments platform.
Analysts had expected the listing premium of more than 150 percent over the issue price, while the grey market premium was around 180 percent. Reasonable valuations, healthy financials, strong growth prospects and good relationship with blue chip companies supported the stock price.
The initial public offering of Latent View had seen overwhelming response from investors, subscribing 326.49 times during November 10-12, 2021.
Non-institutional investors had put in bids 850.66 times the portion set aside for them, and qualified institutional buyers bought shares 145.48 times the reserved portion. Retail investors also looked aggresive, subscribing for shares 119.44 times the portion set aside for them and employees' portion was subscribed 3.87 times.
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The company, which provides services to blue-chip companies in Technology, BFSI, CPG & Retail, Industrials, and other industry domains, has raised Rs 600 crore through its maiden public issue. The offer was composed of a fresh issue of Rs 474 crore and an offer for sale by selling shareholders.
All analysts had recommended subscribing the public issue, given the healthy growth in global data & analytics market going ahead.
The global data & analytics market is expected to grow at a CAGR of 18 percent from $174 billion in FY20 to $332.6 billion by FY24.
"Across industries, data and analytics are being leveraged by enterprises to guide business strategy and optimize spending decisions. Latent View is among the leading pure-play data analytics services companies in India. At the upper price band of Rs 197, the stock trades at 43.68x its FY22E EPS of Rs 4.51/-(based on annualize latest earning and fully diluted equity post issue). Hence, we recommend to subscribe the issue from a long-term prospective," Asit C Mehta had said.
Considering the bright future and attractive valuations, Choice Broking had also assigned a 'subscribe' rating for the issue.
"At higher price band of Rs 197, Latent is at significant discount to its sole peer company. However the demanded valuation is at premium to sector P/E multiple. We feel in future there will be a great demand for pure play analytics company like Latent View, which is engaged in providing analytics services, offering an in-depth understanding of solving complex customer problems and assists business entities in making an informed decision," the brokerage reasoned.
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