November 11, 2021 12:06:35 pm
Latent View Analytics IPO: The initial public offering (IPO) of Latent View Analytics opened for subscription on Wednesday, November 10, 2021. The offer got fully subscribed within hours of opening and by the end of the first day of bidding, it was subscribed 6.39 times.
It received total bids for 11,19,06,580 shares across both the stock exchanges against 1,75,25,693 shares on offer, data from BSE showed.
The Rs 600 crore Latent View Analytics IPO will be available for subscription till Friday, November 12, 2021, and the price band of the company has been fixed at Rs 190-197 per share.
The IPO comprises fresh issue of equity shares worth Rs 474 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 126 crore by a promoter and some existing shareholders.
As a part of the OFS, promoter Adugudi Viswanathan Venkatraman will offload shares worth Rs 60.14 crore, shareholder Ramesh Hariharan will sell Rs 35 crore shares and Gopinath Koteeswaran will offload Rs 23.52 crore shares among others.
At present Venkatraman owns 69.63 per cent stake in the company, Koteeswaran holds 7.74 per cent stake and Hariharan has 9.67 per cent holding in the firm.
The net proceeds from the IPO will be used for funding inorganic growth initiatives, working capital requirements of the subsidiary LatentView Analytics Corporation, and investment in subsidiaries to augment their capital base for future growth and general corporate purposes.
Investors who wish to subscribe to Latent View Analytics IPO can bid in a lot of 76 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,972 to get a single lot of Latent View Analytics. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, November 15, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Axis Capital, ICICI Securities and Haitong Securities India are the book running lead managers to the offer while Link Intime India is the registrar of the issue.
Latent View Analytics provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions. It engages and provides services to blue chip companies in technology, BFSI, CPG & retail, industrials and other industries, and have worked with over 30 Fortune 500 companies in the last three fiscals.
The company serves clients across countries in the United States, Europe, and Asia through its subsidiaries in the United States, Netherlands, Germany, United Kingdom and Singapore, and its sales offices in San Jose, London and Singapore.
Before heading into the IPO, Latent View Analytics raised over Rs 267 crore (Rs 2,67,01,17,906) from 34 anchor investors in lieu of 13,553,898 equity shares at Rs 197 each, data from the stock exchanges showed.
The anchor investors include the likes of Abu Dhabi Investment Authority, Ashoka India Equity Investment Trust Plc, Axis Mutual Fund (MF), ICICI Prudential MF, Aditya Birla Sun Life MF, Edelweiss MF, SBI Life Insurance Company and Bajaj Allianz Life Insurance Company among others.
The research teams at Anand Rathi Share and Stock Brokers and IIFL Securities in their respective IPO notes have recommended a “Subscribe” to the offer.
IIFL Research in its IPO report said, “At higher price band of Rs 197, the company is demanding a PE multiple of ~36.8x on FY21 earnings. Compared to its listed peer Happiest Minds Technologies Limited, which demanded a PE multiple of 118.02x as on July 28, 2021, the valuation of Latent View Analytics looks reasonable. Considering the future growth potential of data analytics industry, strong return ratios (ROE and ROCE of 20.89% and 23.89%, respectively in FY21), strong relationships with blue chip company, leadership position in data and analytics in India, and a wide range of capabilities, we recommend “Subscribe” to the IPO with a long-term perspective.”
The share allotment is likely to take place on Wednesday, November 17, 2021, and the shares are expected to be listed on Tuesday, November 23, 2021, according to the timeline given in the red herring prospectus (RHP).
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