Mumbai: The ₹600-crore initial public offer of Latent View Analytics received record bids with the issue getting subscribed 338 times on Friday – the final day of bidding. The issue got bids for 572.18 crore shares worth ₹1.12 lakh crore, which is more than five times the demand for India’s largest-ever IPO from Paytm, whose ₹18,300-crore issue ended on Wednesday.
Latent was selling 1.75 crore shares in the IPO. The portion reserved for non-institutional investors was subscribed 850.66 times, a record for a ₹500-crore plus IPO. BSE data showed retail investors’ quota was subscribed 119 times, whereas institutional investors bid for 145.48 times the shares set aside for them. The issue, which opened for subscription on Wednesday, was fully subscribed within the initial 45 minutes.
The company was selling its shares at a price band of ₹190-197. In unofficial grey market, Latent View Analytics is trading at a premium of ₹310 apiece, about 156% over ₹197 – the higher end of the price band.
The IPO comprised a fresh share issue worth ₹474 crore and an offer for sale of ₹126 crore by a promoter and existing shareholders. On Tuesday, the company raised ₹267 crore from 34 anchor investors, including Hornbill Orchid India Fund, HSBC, Abu Dhabi Investment Authority, Wellington India Opportunities Fund, Axis Mutual Fund and ICICI Prudential Mutual Fund among others.
Latent View Analytics provides data and analytics consulting, business analytics, advanced predictive analytics, data engineering, and digital solutions.
The company is valued at 43 times FY21 earnings and 44 times FY22 annualised earnings. At the upper end of the price band, the issue is priced at a price to book value of 7.29 times based on its NAV of ₹27.02 as of June 30, 2021. Majority of brokerages recommended subscribing to the offer, citing reasonable valuations.
“We like the scalable and attractive financial profile of the company with a strong leadership team guiding capability development and go-to-market strategy,” said a note by Hem Securities.