Latent View Analytics Limited IPO details – Date, Price, Size, Allotment Status, Subscription

IPO-Note	Latent View Analytics Limited
Rs 190- Rs 197 per Equity share	Recommendation: SUBSCRIBE

Company Profile: –

Latent View is among the leading pure-play data analytics services companies in India, based on the expertise of the entire value chain of data analytics from data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions, Company engages and provides services to blue chip companies in Technology, BFSI, CPG & Retail industries. The Company has emerged as one of the most trusted partners to several Fortune 500 companies in recent years, LVAL designs and engineers result-oriented analytics solutions for clients across industries, that enable them to operate more efficiently by predicting outcomes, Latent View serves clients across countries in the United States, Europe, and Asia through its subsidiaries, Key clients that includes Adobe, Uber Technology and 7-Eleven. The company classifies its business into four parts –

(i) Consulting services, which involves understanding relevant business trends,challenges, and opportunities

(ii) Data engineering, to design, architect, and implement the data foundation;

(iii) Business analytics, which delivers analysis and insights for clients; and

(iv) Digital solutions Automate business process.

Latent View Analytics Limited IPO- Details

Issue Details
Objects of the issue	·Funding inorganic growth initiatives; ·Funding working capital requirements of Latent View Analytics Corporation,and ·Investment in Subsidiaries to augment their capital base for future growth.
Issue Size	Total issue Size -Rs. 600 Cr. Offer for Sale – Rs. 126 Cr. Fresh Issue –Rs. 474 Cr.
Face value	Rs.1.00 Per Equity Share
Issue Price	Rs. 190 – Rs. 197
Bid Lot	76 shares
Listing at	BSE, NSE
Issue Opens:	10th Nov, 2021 – 12th Nov, 2021
QIB	75% of Net Issue Offer
Retail	10% of Net Issue Offer
NIB	15% of Net Issue Offer

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Latent View Analytics Limited IPO Financial Performance:

Latent View Analytics Limited IPO Shareholding Pattern:

Shareholding Pattern	Pre- Issue	Post Issue
Promoters & Promoter Group	79.30%	68.11%
Public	20.70%	31.89%

Source: RHP, EWL Research

Latent View Analytics Limited IPO Strengths:

• One of the leading pure play data analytics companies in India.

• Extensive experience across a range of data and analytics capabilities.

• Blue chip client across industries and geographies.

Latent View Analytics Limited IPO Key Highlights:

• Revenue from operations has grown at a CAGR of 5.08% from FY19-21

• EBITDA Margin improved from 30.88% in FY20 to 36.90% in FY21

• PAT has grown at a CAGR of 24% from FY 19-21, in FY 21 Company Profit has improved from 72.8 cr to 91.4 cr.

• Around 90% of the revenue come from United States.

• Revenue from top five client in FY 21 amounted to ₹165 which represent 54% of the revenue from operation.

• Company reported ROE of 20.89% in FY 21.

• On consolidated basis company reported cash flow of ₹ 90cr and free cash flow of ₹ 71 cr in FY 21.

Latent View Analytics Limited IPO Risk Factors:

• Company has very high concentration in United States and majority of revenue come from few clients.

• Company enter long term contract with their client which form significate revenue for the company in future if any client don’t renew their partnership this is going to adversely impact revenue .

Outlook:

Latent View Analytics Limited designs and engineers result-oriented analytics solutions for clients across industries, that enable them to operate more efficiently by predicting outcomes that fuel digital transformation and sustainability. Its expertise in business analytics includes analytics with respect to customer profiling, targeted marketing, supply chain management, finance and risk management, and HR functions. The business model is supported by stable and recurring revenues, significant operating leverage and low capital requirements that contribute to a healthy free cash flow. At the higher price band of Rs 197, the offer is made at P/E multiple of 38.62x of FY21 EPS, considering the uniqueness of business and its niche position in data analytics service, we recommend SUBSCRIBE rating to the IPO.

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