IPO Of This Unknown Company Gives 169% ROI On Issue Price! India’s Best Ever IPO Performance?

IPO Of This Unknown Company Gives 169% ROI On Issue Price! India's Best Ever IPO Performance?
IPO Of This Unknown Company Gives 169% ROI On Issue Price! India’s Best Ever IPO Performance?

The game of the stock market works on perceptions. If the investors think that you are running a lucrative business they will come hopping in to invest in your company. And if you are running a successful business but still the market doesn’t believe in you, then you might be booed. The booing was recently was experienced by India’s leading digital payments platform, Paytm.

But the market can not stay in one mood perpetually. For every being listed on the platform, it reacts in a different way. For example, recently listed Latent View Analytics. The company saw an overwhelming response from investors.

Latent View Analytics receives massive interest from investors

The market was not surprised when data analytics services provider Latent View Analytics started off the first-day trade with a massive 169 percent premium on the bourses on November 23.

The stock opened at Rs 530 on the BSE and the opening tick on the National Stock Exchange was Rs 512.20, against the issue price of Rs 197 per share. This issue has changed the market’s mood which was dull because of Paytm IPO last week.

Analysts had expected the listing premium of more than 150 percent over the issue price, while the grey market premium was around 180 percent. Reasonable valuations, healthy financials, strong growth prospects and good relationships with blue-chip companies are being touted as the reason for high response.

The company raises Rs.600 crores

The initial public offering of Latent View had seen an overwhelming response from investors, subscribing 326.49 times during November 10-12, 2021.

Bids by non-institutional investors were 850.66 times the portion set aside for them, at the same time, qualified institutional buyers bought shares 145.48 times the reserved portion. Retail investors also showed massive interest, subscribing for shares 119.44 times the portion set aside for them, and the employees’ portion was subscribed 3.87 times.

The company provides services to blue-chip companies in Technology, BFSI, CPG & Retail, Industrials, and other industry domains. And now it has raised Rs 600 crore through its maiden public issue.

Analysts are highly valuing pure-play analyst companies

“Across industries, data and analytics are being leveraged by enterprises to guide business strategy and optimize spending decisions. Latent View is among the leading pure-play data analytics services companies in India. At the upper price band of Rs 197, the stock trades at 43.68x its FY22E EPS of Rs 4.51/-(based on annualizing latest earning and fully diluted equity post issue). Hence, we recommend to subscribe the issue from a long-term perspective,” Asit C Mehta, one of the trusted financial services companies, asserted.

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