IPO Analysis: Latent View Analytics Ltd
IPO Rating: Invest for long-term
About the issue:
Latent View Analytics Ltd is one of the leading pure-play data analytics services companies in India. The company is coming out with its initial public offering (IPO) of equity shares of the face value of Rs 1 per equity share. The maiden offer comprises a fresh issue of Rs 474 crore and the sale of shares worth Rs 126 crore by existing investors, according to its red herring prospectus. The price band of the issue has been fixed at Rs 190 to Rs 197 per equity share. The IPO opening date is November 10, 2021, while it will be closing on November 12, 2021. The issue will be listed on the exchange on November 23, 2021. The IPO market lot size is 76 shares. A retail-individual investor can apply up to a maximum of 13 lots (988 shares or Rs 1,94,636). The net proceeds generated from the IPO will be utilized for funding inorganic growth initiatives; funding working capital requirements of Latent View Analytics Corporation, the company’s material subsidiary; investment in subsidiaries to augment their capital base for future growth; and for general corporate purposes.
Latent View Analytics IPO Details:
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IPO Opening Date
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Nov 10, 2021
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IPO Closing Date
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Nov 12, 2021
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Issue Type
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Book Built Issue IPO
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Face Value
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₹1 per equity share
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IPO Price
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₹190 to ₹197 per equity share
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Market Lot
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76 Shares
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Min Order Quantity
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76 Shares
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Listing At
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BSE, NSE
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Issue Size
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[.] Eq Shares of ₹1
(aggregating up to ₹600.00 Cr)
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Fresh Issue
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[.] Eq Shares of ₹1
(aggregating up to ₹474.00 Cr)
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Offer for Sale
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[.] Eq Shares of ₹1
(aggregating up to ₹126.00 Cr)
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Employee Discount
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₹19
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About the company:
Incorporated in 2006, Latent View provides analytics services such as data and analytics consulting, business analytics and insights, advanced predictive analytics, data engineering, and digital solutions. The company provides services to blue-chip companies in Technology, BFSI, CPG and Retail, Industrials, and other industry domains. The company classifies its business into - (i) Consulting services, which involves understanding relevant business trends, challenges, and opportunities and preparing a roadmap of data and analytics initiatives that addresses them; (ii) Data engineering, to design, architect, and implement the data foundation required to undertake analytics; (iii) Business analytics, which delivers analysis and insights for clients to make more accurate, timely and impactful decisions; and (iv) Digital solutions which the company develops to automate business processes, predict trends and generate actionable insights.
The company has a presence across countries in the United States, Europe, and Asia through their subsidiaries in the United States, Netherlands, Germany, United Kingdom, and Singapore, and their sales offices in San Jose, London, and Singapore. Latent View has worked with over 30 Fortune 500 companies in the last three fiscals and some of the key clients include Adobe, Uber Technology, and 7-Eleven.
Competitive Strengths:
One of the leading pure-play data analytics companies in India
Extensive experience across a range of data and analytics capabilities
Blue-chip clients across industries and geographies
Focus on innovation and R&D
Scalable and attractive financial profile
Strong, experienced leadership team
Company Financials:
The company is financially healthy and growing strong as the profitability has been exploding in the last couple of years.
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Particulars
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FY19
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FY20
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FY21
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Revenue From Operations (Rs Crore)
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287.93
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310.35
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305.87
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EBITDA (Rs Crore)
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72.67
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80.41
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104.56
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EBITDA Margin (%)
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25.2
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25.9
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34.2
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PAT (Rs Crore)
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59.66
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72.84
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91.46
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PAT Margin (%)
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20.72
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23.47
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29.9
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ROE (%)
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22.36
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20.94
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20.89
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Recommendation:
One of the best things about the data and analytics services provided by the company is the vast application in varied industry segments. Modern-day businesses are continuously leveraging data and analytics to increase the efficiency and predictability of outcomes that impact enterprises directly. The company has partnered with some of the big names from Fortune 500 companies like Adobe, Uber Technology and 7-Eleven. It has built expertise in business analytics including analytics with respect to customer profiling, targeted marketing, supply chain management, finance and risk management, and HR functions.
Talking about the financials, the topline took a dip in FY21 when compared with FY20 as a result of the global lockdown situation in the year. But the bottom line has been improving throughout. Also, the company is sitting on a good amount of cash. The cash flow from operating activities stands at Rs 89.8 crore in FY21 as against Rs 63 crore in FY20. The returns for stakeholders are decent. Hence, we recommend - invest in the IPO from a long-term perspective.