The public issue of Latent View Analytics, a data analytics services provider, continues to see strong demand from investors, subscribing 11 times on the second day of bidding, November 11, as it received bids for 19.23 crore equity shares against IPO size of 1.75 crore equity shares.
As per the subscription data, retail investors bought shares 50 times the portion set aside for them, and the portion reserved for employees was subscribed 1.74 times.
Qualified institutional buyers have put in bids for 24 percent of shares reserved for them, and a part set aside for non-institutional investors saw 7.10 times subscription.
The Rs 600-crore public issue, which closes on November 12, was subscribed 6.39 times on first day of bidding. The offer consisted of a fresh issue of Rs 474 crore and an offer for sale of Rs 126 crore by selling shareholders.
The company will utilise fresh issue proceeds for inorganic growth initiatives, working capital requirements of material subsidiaries, and investment in subsidiaries.
The company has a recognised leadership position in data and analytics with a wide range of capabilities along with deep and entrenched relationships with blue chip clients across industries and geographies. The data and analytics industry in which the company operates looks promising considering future growth prospects with expected CAGR growth of 18 percent by 2024 to $333 billion, says Anand Rathi Research.
The price band for the offer has been fixed at Rs 190-197 per share. "The company is available at the upper end of the IPO price band at 42.6x its FY21 earnings attributable to post issue equity, demanding a market cap of Rs 3,896.3 crore. At the upper End of the IPO price band, the issue is priced at a P/BV (price-to-book value) of 7.29x based on its NAV of Rs 27.02 as of June 30, 2021," says Anand Rathi. "The company has a healthy margin profile with a three years average RoNW (return on net worth) of 21.15 percent."
"Considering the company's plan for inorganic growth, longstanding relationship with some of the fortune 500 companies, its leadership position in the industry, we recommend a ‘subscribe’' rating to this IPO," says Anand Rathi.
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