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The record subscription to the initial public offering (IPO) of LatentView Analytics is a reaffirmation of investors' faith in businesses with good old-fashioned profitable growth, said LatentView Analytics CEO Rajan Sethuraman.
“This is just a reaffirmation of fundamentals. Traditionally, companies that have been profitable, grown well and generated free cash flows were the one that attracted investor’s attention and interest. In recent times, several of these notions have been questioned and alternative models have emerged on how companies are valued especially in relation to new age internet-based businesses,” Sethuraman told BusinessLine .
Record subscription
The Chennai-based data analytics company created history last week by becoming the most subscribed initial share sale in the history of the Indian primary market. The company’s ₹600 crore IPO received record bids worth ₹1.13-lakh crore with oversubscription from all categories of investors.
The current fiscal year saw several new-age, loss-making companies including Paytm and Zomato coming up with IPO to cash in on the IPO frenzy.
“It doesn’t mean that other businesses that are coming to the market are not valuable. I think our business model and what it brings to the table has been a breath of fresh air in the current climate given that many of the other businesses that have come to the market have slightly different models,” Sethuraman said.
‘Matured’ investors
LatentView posted a consolidated profit for FY21 stood at ₹91.46 crore, up from ₹72.84 crore in FY20 and ₹59.66 crore in FY2019. For the quarter ended June 2021, the company net profit stood at ₹22.31 crore as against ₹22.80 crore in the year-ago quarter.
Besides the fundamentals, Sethuraman also attributed the investor interest to their increasing maturity in appreciating latest technology, new age approaches and concepts.
“Data and analytics in some sense are relatively new in comparison to other technologies. Analytics is coming of age and we are seeing that happening increasingly right on back of the pandemic as more and more businesses have gone digital either in entirety or partially,” he added.
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