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Analysts recommend subscribing to Latent View Analytics IPO on strong demand for data analytics

Analysts recommend subscribing to Latent View Analytics IPO on strong demand for data analytics
Stock Market3 min read
  • Data analytics services company Latent View Analytics IPO has opened today and will close on November 12.
  • The company is looking to raise ₹600 crore through public listing.
  • Analysts feel ,in future, there will be a great demand for pure play analytics companies, which are engaged in providing analytics services, offering an in-depth understanding of solving complex customer problems.
While data analytics companies are new to stock investors, analysts feel there will be a huge demand for such services in future. The positive view for the analytics industry is good news for the initial public offering (IPO) of data analytics services company Latent View Analytics that opened today, November 10.

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.

Moreover, the strong grey market premium threw limelight on the IPO of Latent View Analytics as shares of the company were demanding a premium of over 100%, that is ₹230 per share.

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.
Brokerage firm

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Choice Broking

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Reliance Securities

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TopShareBrokers

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Religare Broking

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Investmentz Research

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“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.

Analysts recommend the IPO for long term investment as analytic services companies are here to stay.

“We believe Latent View has distinctive product offerings, relevant experience and capabilities to manage customers which aid in driving the company’s revenue and operating efficiencies. On the financial front, the company’s performance is decent. From a long term perspective, we have a positive view on the company,” said analysts at Religare Broking.

The global data and analytics market is expected to grow at a CAGR of 18% from $174 billion in FY20 to $332.6 billion by FY24, said analysts at Investmentz Research. “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. We recommend to subscribe the issue from a long-term perspective,” said the broking firm.

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