On NSE, the stock debuted at Rs 512.20, up 160 per cent.
At the issue price, the company commanded a market capital of Rs 3,896 crore, which shot up to Rs 10,484.16 crore thanks to a strong listing.
Latent View Analytics is a pure-play data analytics services company in India that offers consulting services, data engineering, business analytics and digital solutions. It provides services primarily to companies in technology, retail, industrials and BFSI.
The IPO, which was sold from November 10 to November 12, had received subscription for 572.18 crore shares worth Rs 1.12 lakh crore. This was more than five times the demand for India’s largest-ever IPO from Paytm.
The money raised by the company is intended to be used for inorganic growth initiatives (to the tune of Rs 147 crore), investment in the subsidiaries (Rs 130 crore) and funding working capital requirements of a material subsidiary Latent View Analytics Corporation.
The company reported a compounded annual growth rate of 3 per cent during FY19-21 but saw a 20 per cent growth in Ebitda and 24 per cent growth in profit after tax during the same period. Analysts noted that the company’s Ebitda margin improved to 34.2 per cent in FY21 from 25.3 per cent in FY19. High attrition rate at 26.7 per cent in FY21 was an issue, which led to higher wages, resulting in the lowering of Ebita margin to 30.8 per cent in the June quarter.
Many analysts had a subscribe rating on the IPO that was seeking a valuation of 42.6 times FY21 earnings compared with 115 times FY21 earnings peer Happiest Minds was trading at.
