Latent View Analytics dream run on stock market continues with the scrip frozen at the 20 per cent upper circuit for the second straight day, at Rs 702.35 on the BSE on Thursday after strong market debut on the bourses on Tuesday. In past two trading days, the stock has zoomed 43 per cent after its bumper listing.
The shares data analytics firm listed at Rs 530 per share, a 169 per cent premium against the issue price of Rs 197 per share. With past two days rally, the stock has zoomed 257 per cent from its issue price.
The counter has seen huge trading volumes with a combined 23.7 million equity shares representing 12 per cent of total equity of Latent View changing hands on the BSE and NSE. There were pending buy orders for 300,000 shares on both the exchanges, data showed. In comparison, the S&P BSE Sensex was up 0.73 per cent at 58,768 at 02:22 pm.
Latent View is among the leading pure-play data analytics services companies in the country. The company functions in areas such as consulting services, data engineering, business analytics and digital solutions.
The company serves clients across countries in the United States, Europe, and Asia through its subsidiaries in the United States, Netherlands, Germany, United Kingdom, and Singapore, and its sales offices in San Jose, London, and Singapore.
As per the latest shareholding pattern filed by Latent View shows that mutual funds held 4.8 per cent stake in the company, while foreign portfolio investors, and financial institutions and banks held 3.31 per cent and 1.31 per cent holding, respectively. Individual shareholders have 10.84 per cent stake, of which 6.19 per cent stake are with Gopinath Koteeswaran, data showed.
The company saw a bumper response from the investors where the IPO got subscribed 326 times. The issue was priced at 37x at the upper price band of Rs 197. It is the first of its kind to get listed in the Indian stock market with no apple to apple peers. So it has a first-mover advantage which is backed by strong management and fundamentals with increasing margins.
There is a risk of revenue concentration and the revenue growth has been muted in the last three years. However, the industry is expected to grow at a CAGR of 15-20 per cent in the next 3 years which will aid the company's revenue, said Parth Nyati, Founder, Tradingo post listing of Latent View.
“The strong part of the company is that it will be one of its kind listed company, experienced management, and quality corporate governance practices. It has a strong client base from fortune 500 but there is concentration risk because 55 per cent of its revenue comes from the top 5 clients. Revenue growth has been muted for this company however it has a strong margin with more than 20 per cent ROE. The overall outlook is bullish but the valuations look expensive after a strong listing,” said Santosh Meena, Head of Research, Swastika Investmart, post listing on the company.