Latent View Analytics' shares will list on stock exchanges BSE and NSE on Tuesday. Chennai-based data analytics company Latent View's grey market premium (GMP) hinted at a strong listing ahead for the stock. Latent View Analytics commanded a premium of around Rs 300 in the grey market -- the unofficial market for unlisted securities -- on Tuesday, according to dealers.
It is the first mainboard listing after that of Paytm parent One97 Communications and Sapphire Foods, which operates Pizza Hut and KFC chains in the country.
"Small size issues that got a robust subscription may revive sentiments in the primary market after the Paytm listing.Owing to robust subscription across categories, a stellar debut is expected for Latent View Analytics and we may see a listing above Rs 450-500," said Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities.
"On the valuation front, the issue looks priced on the higher side at an asking PE of 38x. However, the company enjoys a 34 percent EBITDA margin, which is working in its favour," he said.
Latent View Analytics' initial public offer (IPO) received a phenomenal response from investors. The Latent View IPO saw an overall subscription of 326.5 times the shares on offer. The portion reserved for non-institutional investors -- or high net worth individuals -- was booked 850.7 times, and that for qualified institutional buyers (QIBs) 145.5 times. The quota reserved for retail investors was subscribed 119.4 times, and that for employees 3.9 times.
Up to 75 percent of the IPO was reserved for QIBs, 15 percent for non-institutional investors, and 10 percent for retail investors.
The company's Rs 600-crore IPO comprised fresh issuance of shares worth Rs 474 crore and an offer for sale (OFS) of shares worth Rs 126 crore by existing shareholders.
Under the Latent View IPO, shares were available for bidding in the price band of Rs 190-197 in multiples of 76. At the upper end of the price band, an investor would spend Rs 14,972 for one lot.
Prior to the IPO, Latent View Analytics had raised Rs 267 crore from 34 anchor investors at Rs 197.
Latent View Analytics provides services ranging from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions.