Latent View Analytics’ GMP increases to ₹285; IPO subscribed 11 times so far

• Data analytics services company Latent View Analytics’ IPO has been subscribed 11.35 times so far. The IPO will conclude on November 12.
• Analysts are bullish on the analytics services industry as they see future demand for such services to solve complex customer problems.
• In line with the positive view on the company’s outlook, the grey market premium of the company’s shares has risen to ₹285 from ₹230 earlier.

Latent View Analytics’ initial public offering (IPO) has received strong demand from investors in just one day of the bidding process.

The IPO of the 15-year old data analytics services company, which opened on November 10, has been subscribed 11.35 times as of 1 p.m., on November 11. The IPO will conclude on November 12.

Investors	Subscription status
Qualified institutional investors	0.25 times
Non-institutional investors	7.30 times
Retail	51.79 times
Overall	11.35 times

One reason for the huge demand in the IPO is rising grey market premium which signals strong listing for the public issue. In line with the positive view on the company’s outlook, the grey market premium of the company’s shares has risen to ₹285 from ₹230 earlier.

Latent View Analytics is looking to raise ₹600 crore through the public listing of shares. The IPO comprises a fresh issue of ₹474 crore and an offer for sale of ₹126 crore by existing shareholders and promoters.

The company will utilise net proceeds from the fresh issue of the IPO into inorganic growth initiatives, working capital requirements of subsidiary Latent View Analytics Corporation and investment in subsidiaries to augment the capital base.

The 15-year old company provides analytics services such as data and analytics consulting, business analytics and insights, advanced predictive analytics, data engineering, and digital solutions. It provides services to blue-chip companies in technology, banking, financial services and insurance (BFSI), consumer packaged goods (CPG) companies and retail, industrials, and other industry domains.

Adding to it, brokerage firms are also bullish on the analytics services industry as they see future demand for such services to solve complex customer problems.

“We feel in future there will be a great demand for pure play analytics company [sic] like Latent View, which is engaged in providing analytics services, offering an in-depth understanding of solving complex customer problems and assists business entities in making an informed decision. Thus considering the bright future and attractive valuations, we assign a “SUBSCRIBE” rating for the issue,” said Choice Broking in a report.

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