Latent View more than doubled on debut in India to cross $ 1 billion valuation

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BENGALURU, Nov. 23 (Reuters) – Shares of Latent View Analytics (LATN.NS) more than doubled when they debuted on Tuesday, signaling strong investor demand for the for-profit Indian startup days after the debacle from the digital payment company Paytm (PAYT.NS).

Latent View, whose initial public offering (IPO) was oversubscribed more than 300 times, gained up to 178.2% to 548 rupees after debuting at 512.20 rupees pre-opening, a premium of 160% from the offer price of 197 rupees.

At the high of the session, the data analytics company was valued at 108.40 billion rupees ($ 1.45 billion).

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“The strength of the company is that it operates in a niche segment but is relevant to companies across all industries,” said Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Investment. Services.

The startup, whose financial base and strong customer base have attracted the interest of investors, was founded in 2006 and provides a range of services including business analysis and data engineering services, and has companies like Adobe (ADBE.O), Uber Technologies (UBER.N) and 7-Onze among its customers.

“The goal of our work is to solve the most complex and high-end problems our customers face, and the pandemic has accelerated the need for businesses to process data to find such solutions,” said Chief Executive Officer Rajan Sethuraman reported to Reuters on Monday.

Latent View recorded a 25.6% increase in profits to 914.6 million rupees for the fiscal year ended in March, and earns more than 90% of its annual revenue from clients based in the United States, according to its prospectus.

“We already have a positive cash flow and are confident internally that the time is right (for an IPO),” Sethuraman added.

Paytm’s dismal start last week, which saw its shares drop more than 27%, raised doubts about upcoming IPOs and raised concerns about the overvaluation of the domestic stock market. Read more

“This is another stellar listing after a disappointment from Paytm that indicates the market is ready and eager to reward quality IPOs,” said Santosh Meena, head of research at Swastika Investmart Ltd.

($ 1 = 74.5500 Indian rupees)

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Reporting by Soumyajit Saha and Anuron Kumar Mitra in Bengaluru; Additional reporting by Abhirup Roy in Mumbai; Editing by Arun Koyyur and Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.


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