Stocks

LatentView zooms 169% on listing

NARAYANAN V Chennai | Updated on November 24, 2021

Lists with a premium of 169% against the issue price of ₹197

At a time when investors, after the disastrous Paytm listing, had begun to wonder if it is the end of the road for IPOs by technology companies, LatentView Analytics has come as a ray of sunshine.

Its stellar listing on Tuesday at a premium of 169 per cent over its issue price on the Bombay Stock Exchange has shown that there is still value for tech players that have strong fundamentals and price their offerings reasonably. The Chennai-based data analytics company got listed at ₹530 apiece on BSE against its offer price of ₹197 per share. The scrip closed the day at ₹488 valuing the company at ₹ 9,665 crore.

 

Markets rebound

The strong showing by LatentView comes on a day the Indian stock markets snapped their four-day losing streak to close positively. Benchmark indices rebounded sharply on across-the-board buying during closing hours, led by a sharp recovery in metals and PSB stocks. The BSE Sensex closed at 58,664.33, up 198.44 points or 0.34 per cent. The Nifty 50 closed at 17,503.35, up 86.80 points or 0.50 per cent, near the day’s high of 17,553.70.

The shares of One97 Communications, which operates Paytm, also recovered on Tuesday and rose some 10 per cent after a near-40 per cent loss since listing last Thursday.

The LatentView Analytics initial public offer had received phenomenal response. Last week, the company created history 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 ₹1.12-lakh crore with all categories over-subscribed. Promoted by Adugudi Viswanathan Venkatraman and Pramadwathi Jandhyala, the 15-year-old company provides wide-ranging data analytics to various sectors.

Rajan Sethuraman, CEO, speaking to BusinessLine, attributed the massive investor interest in its IPO to reaffirmation of investor faith in businesses with good old-fashioned profitable growth. The company posted a consolidated profit of ₹91.46 crore for FY21 against ₹72.84 crore in FY20. Its revenues stood at ₹305.87 crore in FY21 against ₹310.35 crore in the earlier fiscal.

Published on November 23, 2021

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