The rush among companies for an initial public offering, or IPO, continues to grow, and more and more companies are deciding to go with the flow. The LatentView Analytics IPO is one such example, with the company going for its first issue earlier this week. The offer is already getting an overwhelming response among investors. The three-day offer will close on Friday, November 12 before being listed on the stock exchanges. Latent View Analytics, a data analytics firm, helps companies harness data to help drive digital transformation and gain a competitive advantage among their peers.
On the second day of subscription, i.e. Thursday, November 11, LatentView IPO was subscribed 23.22 times amid strong investor demand. Retail investors and non-institutional buyers have played a significant role in the play. According to the data, retail investors have bought 69.56 times the share reserved for them till the end of the second day. The non-institutional buyers have subscribed 33.29 of the shares reserved for them. Qualified institutional investors have so far bid for 3.51 times of the share reserved for them. LatentView Analytics employees have bid for 2.61 times the shares reserved for them. According to the data on the first day of the issue, the IPO of Latent View was subscribed 6.39 times.
Secret View IPO Details, Price
Latent View Analytics aims to raise Rs 600 crore through IPO. Of this, Rs 474 crore is to be raised through fresh issue, while Rs 126 crore will be raised through sale to shareholders through offer for sale (OFS). The company will not receive any income from OFS. The company has fixed a price band of Rs 190-197 per share for its first share sale. The lot size is 76 shares. Qualified institutional buyers can buy up to 75 percent of the shares, while non-institutional investors can bid for 15 percent of the shares. The remaining 10 per cent has been reserved for retail investors. The issue, which opened on November 10, will close for bidding on Friday, November 12 after a three-day process.
Objectives of the issue
Axis Capital, ICICI Securities and Haitong Securities India Pvt Ltd are the principal managers of Latent View IPO. The company plans to use the proceeds of the new issue to finance the inorganic growth initiative (Rs 147.9 crore), working capital requirements of Latent View Analytics Corporation, its materials subsidiary (Rs 82.4 crore). The proceeds will also be used for investment in subsidiaries for future growth and for general corporate purposes to increase its capital base.
Secret View IPO GMP Today
According to IPO Watch, the unlisted shares of Latent View Analytics are trading at Rs 487 in the gray market. Hence the IPO gray market premium of LatentView on Friday, 12th November was Rs 290.
Should you subscribe to Incognito View IPO?
Anand Rathi: The company is available on the upper end of the IPO price band at 42.6x its FY21 earnings due post equity, seeking a market cap of Rs. 38,963 million. At the upper end of the IPO price band, the issue is priced at a P/BV of 7.29x, based on its NAV of Rs. 27.02 till June 30, 2021. The company has a healthy margin profile with a three-year average RONW of 21.15%. Considering the company’s plan for inorganic growth, long-standing relationships with some of the Fortune 500 companies, and its leadership position in the industry, we recommend a “Subscribe” rating for this IPO.
Reliance Securities: The IPO is valued at 42.6x FY21 earnings and 43.7x FY22 earnings, which appears to be at fair value. LVA pegs Happiest Minds Tech as its counterpart, which trades at extremely high valuations at 115 times FY11 earnings. In particular, growth in IT spending is expected to be driven largely by investments in digital technologies, as enterprises ramp up digital transformation efforts across business units. Investment in digital technologies is expected to double from 2020 levels to ~US$2.4tn (~16.5% CAGR) in 2024. This presents immense opportunities for LVA, which could help it maintain double-digit growth in subsequent years. Hence, we recommend to SUBSCRIBE this issue.
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