Latent View's Adugudi Venkatraman becomes billionaire
Premium- According to today's closing price of Rs702.35 a share on BSE his stake is worth Rs8,275.88 crore or $1.11 billion
The blockbuster initial public offering of data analytics company, Latent View Analytics Ltd has made its promoter Adugudi Viswanathan Venkatraman a billionaire.
Adugudi Viswanathan Venkatraman, Chairperson and Executive Director of the firm has now held 117.91 crore shares or 69.62% stake in the firm. According to today's closing price of ₹702.35 a share on BSE his stake is worth ₹8275.88 crore or $1.11 billion.
Venkatraman sold around 30 lakh shares in the offer for sale. The firm raised ₹600 crore in IPO.
Last month the IPO set a new subscription record at 338 times with bids generating worth ₹1.13 trillion. The stock got a bumper listing, surging over 148% from its issue price of ₹197 a share.
The stock was listed on 23 November. On listing day, it surged nearly 148% and since then it has hit a 20% upper circuit for a second consecutive session. So far from the issue price the stock has surged over 256.34%.
Venkatraman holds a postgraduate diploma in management from IIM Calcutta, and a Bachelor of Technology in Civil Engineering from IIT Madras. He has several years of experience across IT services, credit analysis and business consulting.
Venkatraman has been acting as a Director of the firm since January 3, 2007. He was appointed as Chairman, and Executive Director with effect from August 5, 2021. He was paid a total remuneration of Rs6.75 million during Fiscal 2021 and he is entitled for total remuneration of Rs21 million per annum, for the Fiscal 2022.
Despite modest revenue growth, Latent View has demonstrated healthy earnings growth over the last two years, mainly led by the significant improvement in margins during the period. While the company reported a mere 3% revenue CAGR during FY19-FY21, EBITDA and PAT recorded 20% and 24% CAGR, respectively during the period. Notably, the EBITDA margin has improved from 25.3% in FY19 to 34.2% in FY21.
Further, Latent View’s cumulative operating cash flow and free cash flow stand at Rs220 crore and Rs210 crore, respectively over FY19-FY21, which analysts said is healthy. However, the high attrition rate (26.7% in FY21 and 21.5% in 1QFY22), which led to higher wages and higher other expenditures resulted in EBITDA margin contracting to 30.8% in the first quarter of FY22.
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