Shares of data analytics services provider Latent View Analytics continued to see strong demand in the grey market, trading at over 150 percent premium, ahead of its listing on the bourses next week.
Massive subscription to its IPO, strong financials with healthy margin profile, leadership position in data and analytics segments, and longstanding relationship with some of its blue chip clients are key factors driving the triple-digit premium.
Latent's shares were available at Rs 497-547 in the grey market, a massive Rs 300-350 or 152-178 percent premium over the final issue of Rs 197 per share, as per IPO Watch and IPO Central. The company will debut on the BSE and NSE on November 23.
"The company's expertise in data and analytics-based IT consultancy keeps it in a prime league. It has shown profit growth in the last 3 years," said Amit Pamnani, Chief Investment Officer & DGM for Investment Banking at Swastika Investmart.
Consolidated profit in FY21 grew 25.6 percent on year to Rs 91.46 crore, and in FY20, it rose 22.1 percent to Rs 72.84. However, revenue from operations in FY21 declined by 1.4 percent to Rs 305.87 crore compared to the previous year, but revenue in FY20 was up 7.8 percent at Rs 310.35 crore.
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In the quarter ended June 2021, profit fell moderately by 2.1 percent to Rs 22.31 crore compared to the corresponding quarter of last fiscal; however, revenue increased 20.3 percent to Rs 87.83 crore.
Latent View provides services to blue chip companies in technology, BFSI, CPG & retail, industrials and other industries. The technology segment contributed 63.25 percent to total revenue, BFSI 9.59 percent, CPG & retail 9.62 percent, and industrials space accounted for 17.54 percent to revenue in FY21.
The initial public offering of Latent View Analytics was subscribed 326.49 times during November 10-12, the highest ever subscription received by any IPO in the history of Indian capital market. The portion reserved for qualified institutional investors was subscribed 145.48 times, non-institutional investors bid 850.66 times the reserved portion, and the portion set aside for retail investors was subscribed 119.44 times. Employee participation was also quite strong at 3.87 times.
The company boasts an expertise in the entire value chain of data analytics from consulting to advanced predictive analytics, data engineering and digital solutions. It has raised Rs 600 crore through its public issue that comprised a fresh issue of shares worth Rs 474 crore and an offer for sale of Rs 126 crore.
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The net proceeds from the fresh issue will be utilised to fund inorganic growth initiatives, working capital requirements of subsidiary Latent View Analytics Corporation, and investment in subsidiaries to augment their capital base for future growth.
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