Latent View Analytics IPO subscribed over 32x so far on last day. Should you bid too?

According to the data from the BSE, the issue attracted bids for 57,51,38,968 equity shares, or 32.82 times the offer, as of 11.25 am on Day 2. The company has offered 1,75,25,693 equity shares in its initial stake sale.

The portion reserved for retail bidders was subscribed a whopping 84.65 times, whereas non-institutional bidders’ quota was subscribed 58.57 times. Institutional investors made bids 3.78 times for their potion, the BSE data suggested.

The issue, which kicked off for subscription on Wednesday, sailed through within the initial 45 minutes. Friday is the last day to bid for the issue.

The company is selling its shares in a price band of Rs 190-197. The lot size for the issue has been fixed at 76 shares. Latent View Analytics is commanding a premium of Rs 290 apiece, which is about 150 per cent over the issue price.

Majority of brokerages are positive at the prospects of the company and have suggested subscribing to the offer. Latent View Analytics provides data and analytics consulting, business analytics, advanced predictive analytics, data engineering and digital solutions.

The IPO is valued at 42.6x FY21 earnings and 43.7x FY22 annualised earnings, which Reliance Securities said was a reasonable pricing. The growth in IT spend was expected to be largely driven by investments in digital technologies, as enterprises scale up digital transformation efforts across business units, it added, with a subscribe rating.

Latent View Analytics is planning to raise Rs 600 from the primary market. The offer is a mixture of fresh equity shares worth Rs 474 crore and stake sale by promoters and existing shareholders, which is worth Rs 126 crore.

Marwadi Shares and Finance said considering the FY21 adjusted EPS of Rs 4.60 on post-issue basis, the company would list at a P/E of 42.83 with a market cap of Rs 3,896.3 crore. Its peer Happiest Minds was trading at a P/E of 112.85. “We assign a subscribe rating to this IPO as the company has a recognised leadership position in data and analytics with a wide range of capabilities,” it added. “Also, it is available at a reasonable valuation as compared to its peers.”