Latent’s share sale was India’s most subscribed IPO. The ₹600- crore issue of the data analytics services company was subscribed 338 times earlier this month. The stock touched a high of ₹548.70 during the day before closing at ₹488.60, up 148% from its IPO price.
The IPO which was open for subscription to November 12 from November 10, had received subscription for 572.2 crore shares worth ₹1.12 lakh crore. This was more than five times the demand for India’s largest ever IPO from Paytm. One97 Communications, Paytm’s parent, raised ₹18,300 crore through the IPO.
Analysts say investors should exit the Latent stock as valuations have become pricey after the listing.
“The PE multiple has risen to 95 times versus 38 times at IPO price. valuation is now stretched and investors should book profits and exit,” said Geetanjali Kedia, senior analyst at SPTulsian.com.
Most analysts had a subscribe rating to the IPO which was seeking a valuation of around 42 times FY21 earnings. Latent View had reported a CAGR of 3% in FY19-FY21 and saw a 20% growth in earnings before interest, taxes, depreciation and amortisation in the same period.
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