Data analytics services and consulting firm Latent View Analytics Ltd made a sensational debut on the stock exchanges on Tuesday with its shares nearly tripling compared with the initial public offering (IPO) price.
Shares of Chennai-based Latent View began trading on the BSE at Rs 530 compared with the IPO price of Rs 197 apiece. The stock touched a high of Rs 548.75 apiece in early trade before seeing some profit-taking.
The BSE’s benchmark Sensex was down 0.5% in morning trade.
The strong start follows an IPO that was subscribed a record 326.49 times led by institutional investors and non-institutional investors such as wealthy individuals and corporate bodies.
The company now commands a market capitalization of about Rs 9,500 crore against a valuation of Rs 3,896 crore it sought through the IPO.
Latent View is among more than four dozen firms that have listed their shares on the exchanges this year as companies rush to tap public markets flushed with abundant liquidity that has pushed stock markets to record levels.
The Rs 600-crore IPO comprised an issue of fresh shares worth Rs 474 crore and a secondary market sale by the company’s founders. Of the total, 75% of the shares were reserved for institutional investors, 15% for non-institutional investors and 10% for retail individual investors.
Latent View plans to deploy the cash in hand as well as the fresh proceeds from the IPO towards accelerating its growth plans through organic and inorganic route. The company plans to build capabilities and functional expertise in various sectors like banking, financial services and insurance (BFSI), consumer products and retail.
Incorporated in 2006, Latent View provides analytics services such as data and analytics consulting, business analytics and insights, advanced predictive analytics, data engineering, and digital solutions.
The company provides services to blue-chip companies in technology, BFSI, consumer goods and retail, industrials, and other sectors. It has four business verticals — consulting services, data engineering, business analytics, and digital solutions.