LatentView Analytics IPO comprises a fresh issue of equity shares to the tune of Rs 474 crore and an offer for sale for Rs 126 crore by a promoter and existing shareholders. Latent View Analytics Limited is among the leading pure-play data analytics services companies in India. The company plans to use the proceeds from the IPO to fund organic growth initiatives, working capital requirements and for investment in subsidiaries to augment their capital base for future growth.
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LatentView Analytics IPO Details:
| Issue Opens | 10th November, 2021 |
| Issue closes | 12th November, 2021 |
| Issue Details | Fresh Issue of Equity Shares upto ₹ 474 Cr |
| + Offer for Sale of Equity Shares upto ₹ 126 Cr | |
| Face Value | ₹ 1/- Per Share |
| Issue Size (₹ Cr) | ₹ 600 Cr |
| Bid Lot | 76 shares |
| Price Band | ₹ 190 – 197 |
| QIB | 75% of the net offer |
| NIB | 15% of the net offer (₹ 89 Cr) |
| Retail | 10% of offer ( 3,011,977 Shares;₹ 59 Cr) |
| Retail Applications for 1x | 0.4 Lacs |
LatentView Analytics IPO Review : in Video Presentation form
Updates :
- ANCHOR ISSUE: Ahead of its IPO, LatentView Analytics IPO garnered Rs. 267 crore from 34 anchor investors .
- Anchor investors included Abu Dhabi Investment Authority, Ashoka India Opportunities Fund, HSBC, Hornbill Orchid India Fund,Wellington India Opportunities Fund
- •Aditya Birla Sun Life Trustee, Axis Mutual Fund, ICICI Prudential, Kotak Mutual Fund, Nippon Life, Mirae Asset, SBI Life Insurance, Bajaj Alliance Life Insurance, DSP MF, Franklin, Motilal Oswal MF, UTI MF, and Edelweiss Trusteeship also invested in the company through anchor book.
About LatentView Analytics
- Latent View Analytics Limited was incorporated in 2006
- LatentView Analytics is one among the leading pure play data analytics companies in India.
- The company has expertise across the entire value chain of data analytics from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions.
- Across industries, data and analytics are being leveraged by enterprises to guide business strategy and optimize spending decisions.
- It has emerged as a trusted partner to several fortune 500 companies.
- LatentView Analytics: Segment wise Revenue
LatentView Analytics IPO: Financials
| Particulars / (₹ In Cr) | Jun 21 (3m) | Jun 20 (3m) | 2021(12) | 2020(12) | 2019(12) |
| Revenue from Operations | 87.83 | 73.03 | 305.88 | 310.36 | 287.93 |
| Revenue Growth (%) | 20.27% | – | -1.44% | 7.79% | – |
| EBITDA | 28.69 | 28.62 | 112.88 | 95.85 | 78.05 |
| EBITDA (%) | 32.67% | 39.18% | 36.90% | 30.88% | 27.11% |
| Net Profit | 22.31 | 22.8 | 91.46 | 72.85 | 59.67 |
| Equity Share Capital | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
| FV | 1 | ||||
| Equity Post IPO | 19.78 | ||||
| IPO Price | 197 | ||||
| EPS FY21 | 4.62 | ||||
| PE | 42.61 | ||||
| Market Cap | 3897 | ||||
| Market Cap / Sales | 12.7 |
Salient Points
- LatentView Analytics’ in-house tools have been implemented in several Fortune 500 businesses and are proven successful in automating business processes, predicting trends, and generating actionable insights.
- The company has a presence across countries in United States, Europe, and Asia through their subsidiaries in the United States, Netherlands, Germany, United Kingdom, and Singapore, and has sales offices in San Jose, London, and Singapore
- 90% revenue comes from US
- Latent View is a trusted partner to several Fortune 500 companies
- It has worked with over 30 Fortune 500 companies in the last 3 Fiscals.
- Some of the key clients that they work include Adobe, Uber Technology and 7-Eleven.
Cons
- The company faces intense competition in its markets. The markets for data and analytics are very competitive.
- Despite being engaged in high growth segment, the company’s sales have remained flat around Rs 300 crore in last three years.
LatentView Analytics IPO: Assessment
- Covid 19 has accelerated the trend for digital solutions.
- IT spending on digital technologies is expected to reach $2.4 trillion by 2024 from $1.3 trillion in 2020.
- Within the broader digital technologies segment, LatentView Analytics operates in the data and analytics sub-segment. This sub-segment is expected to grow at a CAGR of 18 per cent to approximately $333 billion by 2024 (as per a report by Zinnov, commissioned by LatentView).
- 150 cr. earmarked for inorganic growth aligned to its area of focus.
- Margin 27% in FY19 to 37% in FY21. Margins could come down in subsequent years as there may have been a jump due to Covid 19.
- Data Analytics is a higher margin business than IT services.
- Data Analytics consulting firm solving complex and fuzzy problems.
- Company Works with CFO, Marketing and can be seen as a Business consulting work. Company offers managed solutions to clients. Has quite many MBAs, people with economics back ground on its rolls.
- In the midst of pandemic the he company has done a significant business shift to its offshore centers of excellence in Chennai and Bangalore.
- This has resulted in significant margin expansion.
- At the higher price band of Rs 197, the offer is made at a P/E of ~ 43 x which looks OK considering the growth prospects.
- There is no directly comparable listed player, though the company compares itself with Happiest Minds Technologies, which is not right.
- GMP for LatentView Analytics IPO has been reported ~ Rs. 270.
- I intend to apply in the IPO due to company’s recognized leadership position in data and analytics field with proven capabilities.
- Allotment may be quite difficult in this IPO.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.