Latent View Analytics Limited was incorporated in 2006. It is a company engaged purely in Data Analytics, and it is one of the well-established companies in Data Analysis. The company’s core business is Data Analytics, Consulting the result of Analysis, Providing Insights along with Analytics, Advanced Predictive Analytics, Digital Solutions, Big Data Analysis, and Data Engineering. The company cater their service to various categories of business and different sectors. Some of the company’s main clients are the blue-chip organizations engaged in consumer-packaged goods, technology, industrials, financial services, retail, and other areas. In this article, we take a closer look at the Latent View Analytics IPO Review and its possible future prospects.
The company also carries out Data Analysis for Financial and Risk Management, Marketing strategy, HR analysis and Supply Chain Logistics Analysis. The company believes that its Geographic market presence is the primary source of the company’s revenue disaggregation. The company has divided their business into four major fronts:
|Consulting Services||Under this, the company understands the trends, challenges, strategies for growth, opportunities available through Data Analytics.|
|Data engineering||Through this, the company provide architecture, design for data foundation.|
|Business Analytics||Accurate Insights on a regular and timely basis|
|Digital solutions||Under this, the company provides a strategy for generatable insights, prediction of trends and automation impact of the business process.|
OBJECTS OF THE IPO:
- To meet corporate targets.
- To fund the working capital requirement along with the growth strategy of the company.
- To carry out Investment in subsidiaries to increase their capital base for future growth;
- General corporate purposes
BASIS OF THE LATENT VIEW ANALYTICS IPO OFFER:
- The company has a wide variety of skills, and it is a market leader in the business of Data Analytics.
- The company has a strong partnership with many blue-chip clients.
- The company provides its services to various industries and has a wide geographical presence.
- The company is renowned for providing End-to-End Client customized Services been supported by their Strong Technological Platforms.
- The company has a strong, stable and growing financial profile.
- A strong management team backs the company. It has an excellent Board of Directors along with experienced Promoters.
LATENT VIEW ANALYTICS IPO:
Latent view Analytics Limited is a company engaged in data analysis with its headquarters in Bhubaneswar. Recently the company got approval from SEBI on their DRHP to float their IPO in the market. The IPO will be of Rs.600 Crores. The IPO consists of both an issue of fresh equity worth Rs. 474 Crores and an OFS been brought by the promoters and the selling stakeholders worth Rs.126 Crores. Check Day by Day IPO Subscription Details (Live Status)
Through the OFS, following people are expected to offload their equity:
|Mr. Adugudi Viswanathan Venkatraman||Rs. 60.14 crore|
|Mr. Ramesh Hariharan||Rs. 35 Crore|
|Mr. Gopinath Kodeeswaran||Rs 23.52 Crore|
|IPO Opening Date||November 09, 2021|
|IPO Closing Date||November 11, 2021|
|Issue Type||Book Building Type|
|Face Value||Rs.1/ Equity Share|
|IPO Price||Rs.190 – Rs.197 / Equity Share|
|Market Lot||76 shares in 1 Lot|
|Minimum Order Quantity||76|
|Minimum Order Quantity Price||Rs. 14,972|
|Maximum Order Quantity||988 shares in 13 Lots|
|Maximum Order Quantity Price||Rs. 194,636|
|Listing At||BSE, NSE|
|Issue Size||Rs.600 Crores|
|Fresh Issue||Rs.474 Crores|
|Offer for Sale||Rs.126 Crores|
|Basis of Allotment Date||November 16, 2021|
|Initiation of Refunds||November 17, 2021|
|The Credit of Shares to Demat Account||November 18, 2021|
|IPO Listing Date||November 22, 2021|
|Basis of Allotment Type||% Of the IPO Offer|
|Qualified Institutional Buyer||75|
|Particulars||For the year ended (in Crores)|
|Profit After Tax||91.46||72.85||59.67|
|PARAMETER||% Increase in FY21 from FY20|
|Net worth||26.62 %|
|Return on Equity||20.86 %|
|Total Assets||23.52 %|
|Fixed Assets||-13.51 %|
|Current Assets||4.03 %|
|Current Liabilities||33.03 %|
|Trade Receivables||84.74 %|
|Trade Payables||-37.33 %|
STRENGTHS AND GROWTH ASPECTS OF LATENT VIEW ANALYTICS IPO:
- The company is one of the few companies engaged in the business of Data Analysis.
- The company has a strong Business Association with many Blue-chip companies. It also has a strong association with many foreign clients in the USA, UK, Europe, Singapore and South Asian Countries. The company also holds an association with 30 companies listed in Fortune 500 Index.
- The company carries out data analysis for different industries and, as a result, has a diversified service and Geo-Logical reach.
- The company has a stable growth of revenue. The company also registered an increase in the revenue from their business operation in the last two years.
- The company has operated on good margins of about 20-22% for the last three years. Due to this, the profitability ratio of the company has increased over the period.
- The rise of the sector and Big Data Analysis nowadays is also another factor that can lead to the company’s growth.
- The company has a wide range of service portfolios. It is a Market Leader in the field of Data Analysis.
- The company generates around 54% of its revenue from the Top Clients. These clients have been associated with the company for a very long time. It signifies the trust that the clients have in the service being provided by the company.
- The company is highly renowned for providing and ending customized solutions.
- The company recently launched their new platform, MatchView. The platform is used to collect and carry out Data Analysis via online and offline mediums. It also launched IdeaLabs, an R&D platform for Data Analysis.
- The company has strong client retention with a long-term business association that enables long-term revenue and good profitability ratios and margins.
- The company has received many Awards and Accreditation Certificates for their Service.
- The company is heading forward for a possible expansion of its client base.
- The company is a direct beneficiary of Capitalizing on industry growth. As the industry grows, the need for data analysis will increase; thus, the business and opportunities for the company will also increase.
- The company has an EPS of Rs 4.42; with the Upper Price Band of Rs 197, the P/E ratio of the company will be at 44.5 times.
WEAKNESS AND THREATS OF LATENT VIEW ANALYTICS IPO:
- The company generates around 90% of their revenue from their US Clients. As a result, the retention of those clients is very important for the business of the company. The company has a high dependence on the US for their business operation.
- The detrimental impact of COVID-19 has been on the company’s financial parameters and Operating Margins.
- The company is also vulnerable to the Forex Currency rates as around 96% of their revenue is from Foreign Clients only.
- The company is engaged in a highly competitive business as it faces competition from many organized and some of the unorganized buy emerging companies. As a result, even being in a high margin business, the profitability ratio at that margin seems not so justifiable.
- The company is vulnerable to Cyber Security attacks and risk of breach of data and Loophole in the Data Management System.
- The company needs to follow strict rules, guidelines and regulations to operate in the business of Analytics.
- The company is also vulnerable to executing any change in its pricing strategies. As a result, it may incur a loss in retaining the client base and attracting new clients.
- The company is currently facing a trial under legal procedure. Any negative news from them could affect the company’s reputation and business operations.
- The company also need to ensure that they properly utilize their resource and production facility to boost their profitability and revenue from the operations.
- Their business might suffer if they cannot create and maintain adequate internal controls and regulatory frameworks.
- The company didn’t propose their targeted acquisitions from the funding it will raise from IPO in their DRHP.
- The company has a major threat to the rise in inflation. It will increase their transportation cost, wages and other aspects upfront. Due to this rise in inflation, their margins will contract, due to which the company will need to increase the cost of the service they offer. It will lead to a decline in their operating cash flows and other financial parameters.
The promoters of the company are:
- Adugudi Viswanathan Venkatraman
- Pramadwathi Jandhyala
|Pre-Issue Share Holding||79.30%|
|Post Issue Share Holding|
Latent View Analytics Limited
5th Floor, Neville Tower, Unit 6,7 and 8,
Ramanujan IT City, Rajiv Gandhi Salai, Taramani,
Chennai- 600113, Tamil Nadu, India
Tel: +91 044 4344 1700
Link Intime India Private Limited
C 101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli (West)
Mumbai – 400 083
Telephone: +91 22 4918 6200