The IPO of data analytics company Latent View Analytics’ (LVAs’) was a runaway hit on Dalal Street witnessing a massive subscription at 338 times the offer size. This is nearly five times the demand for Rs 18,300-crore Paytm’s maiden offer. The IPO went to become India’s most subscribed issue receiving bids worth Rs 1.13 lakh crore against an offer size of Rs 572.18 crore.
Latent View IPO price
The price band of the IPO was Rs 190-197, valuing the company at 42.6x FY21 earnings and 43.7x FY22 annualized earnings, which look to be reasonably priced. Retail investors were allowed to bid in lot sizes of 76 shares entailing a minimum investment of Rs 14,972 for 1 lot and maximum Rs 194,636 for 13 share lots.
Latent View IPO allotment
The allotment process started on November 17 and was completed by November 20. Investors are expected to be credited to demat accounts by November 22. As of today, the share allotment has been finalised and now successful bidders keenly await Latent Analytics IPO listing date. The shares expected to list on November 23, 2021.
Latent View GMP
Those who are allotted the LVA shares have reason to cheer as the company commands a strong premium in the grey market. As of Friday, grey market premium (GMP) was Rs 350 per share. As per Topsharesborkers.com, this GMP means a listing price of Rs 547 translating into 177.66% listing gains for investors, such high gains are hard to come by even in cryptocurrencies such as bitcoin these days.
Latent View is a 15-year-old company and provides services ranging from data and analytics consulting to business analytics and insights, data engineering and digital solutions. It is is promoted by Adugudi Viswanathan Venkatraman and Pramadwathi Jandhyala, who held 69.63 per cent and 9.67 per cent stake respectively prior to the IPO.
Latent View Analytics share price: Is it expensive?
LVA in its RHP stated Happiest Minds Tech as its peer, which trades at an exorbitantly high valuation at 115x FY21 earnings. 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. The investment in digital technologies is expected to double from the 2020 levels to $2.4tn in 2024 around 16.5% CAGR. This presents immense opportunity for LVA, which may aid it to sustain a doubledigit growth in subsequent years, according to Reliance Securities.
