Latent View IPO that got bigger traction than Paras Defence may list on a positive note despite a weak market

• Latent View is scheduled to list on stock exchanges on November 23.
• Investors expect a strong listing considering its rising grey market premium, which is currently at ₹360, and robust outlook for analytics companies.
• Latent View Analytics IPO has been subscribed more than Paras Defence and Technologies, which had received the highest subscription so far.

Data analytics services company Latent View Analytics’ initial public offering (IPO) is expected to open on a positive note on November 23 although market sentiment may prevail the listing gains.

Despite the downward trend in the market amid fear of increasing inflation and rising COVID-19 cases internationally, investors expect a strong listing.

One reason for the euphoria is the increasing grey market premium of the company’s shares which rose to ₹360 from ₹285 earlier, as per IPO Watch.

“Strong financials with healthy margin profile, leadership position in data and analytics segments, and established relationship with its blue-chip clients are key factors driving the triple-digit premium. Investors expect the company to get listed at a good premium to the IPO price,” Neha Khanna, director at financial advisory firm ValPro said in an IPO note.

Category of investors	Subscription status
Qualified institutional investors	150.82 times
Non-institutional investors	881.96 times
Retail	123.84 times
Overall	338.51 times

Latent View’s IPO was the most subscribed domestic IPO at 338 times, breaking the record set by Paras Defence a few weeks ago (304 times).

Some analysts believe that the weakness in the market could impact the stock listing. Valuations and fundamentals of the company look good but the current weakness in the market could impact the listing tomorrow,” Kranthi Bathini, director of equity strategy at WealthMills Securities, told Business Insider.

Further, he said that investors may book profit on the same day of listing if any after a lesson learnt from the case of Paytm and other IPOs, wherein the damage cost of waiting patiently was huge for investors.

"Undoubtedly, the analytics industry holds enormous potential to drive business growth and profitability for the shareholders. When Infosys made its initial public offering, it signified the potential of the IT [information technology] industry. Similarly, this coming-of-age chapter of the analytics industry proves that there is an unstoppable opportunity for the industry. We are optimistic about the future of analytics in India and look forward to riding the wave higher than ever,” said Sunil Mirani, co-founder and chief executive at Ugam, an analytics company, in an IPO note.

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.

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