Latent View Analytics Limited IPO

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i. Incorporated in 2006, the company is among the leading pure-play data analytics services companies and its expertise is in data and analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions.

ii. It design and engineer result-oriented analytics solutions for clients across industries, that enable them to operate more efficiently by predicting outcomes that fuel digital transformation and sustainability. The company’s expertise in business analytics includes analytics with respect to customer profiling, targeted marketing, supply chain management, finance and risk management, and HR functions.

iii. Business of Latent View Analytics:
(i) Consulting services, that involves understanding relevant business trends, challenges, and opportunities and preparing a roadmap of data and analytics initiatives that addresses them
(ii) Data engineering, which is undertaken to design, architect, and implement the data foundation required to undertake analytics
(iii) Business analytics, which delivers analysis and insights for clients to make more accurate, timely, and impactful decisions; and
(iv) Digital solutions that we develop to automate business processes, predict trends and generate actionable insights.

Latent View provides services primarily to companies in Technology, CPG and Retail, Industrials, and BFSI industries. They serve clients across countries in the United States, Europe, and Asia through their subsidiaries in the United States, Netherlands, Germany, United Kingdom and Singapore, and their sales offices in San Jose, London and Singapore.

Latent View has emerged as one of the most trusted partners to several Fortune 500 companies in recent years, and has worked with over 30 Fortune 500 companies in the last 3 Fiscals. Some of the key clients that they work include Adobe, Uber Technology and 7-Eleven.

Competitive Strengths:
i. Recognized leadership position in data and analytics
ii. Deep and entrenched relationships with blue chip clients
iii. Consistent client driven innovation supported by functional expertise
iv. Scalable and attractive financial profile

Objects of the Latent View Analytics Limited IPO:

The Offer comprises a Fresh Issue by the Company and an Offer for Sale. The Company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects: 1. Funding inorganic growth initiatives 2. Funding working capital requirements of LatentView Analytics Corporation, our Material Subsidiary 3. Investment in our Subsidiaries to augment their capital base for future growth 4. General corporate purposes
DRHP of Latent View Analytics Limited IPO
RHP of Latent View Analytics Limited IPO

Latent View Analytics Limited IPO Details:

Open Date: Nov 10 2021
Close Date: Nov 12 2021
Total Shares: 30,456,852
Face Value: ₹ 1 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 600 Cr.
Lot Size: 76 Shares
Issue Price: ₹ 190-197 Per Equity Share
Listing At: NSE,BSE
Listing Date: Nov 22 2021

Promoters And Management:

i. Adugudi Viswanathan Venkatraman, is the Founder and Chairman of the Company. He holds a postgraduate diploma in management from IIM Calcutta, and a Bachelor of Technology in Civil Engineering from IIT Madras. He has several years of experience across IT services, credit analysis and business consulting. ii. Pramadwathi Jandhyala, is a Co-Founder of the Company. She graduated with a B.E. in Computer Science from BITS Pilani and a postgraduate diploma in management from IIM, Calcutta. She has several years of experience in corporate finance, and credit ratings. iii. Dipali Hemant Sheth, is a Non-Executive, Independent Director of the Company. She was appointed as an Independent Director of the Company with effect from June 15, 2021. She holds a B.A. (Honours) degree in Economics from University of Delhi. Prior to joining the Company as an Non-Executive, Independent Director, she was associated with RBS Services India Private Limited as a Country Head of Human Resource’s Standard Chartered Bank, Procter & Gamble Distribution Company Limited and DCM Limited.

Financials of Latent View Analytics Limited IPO:

Particulars (in millions) Mar 21 Mar 20
Income 3,059 3,104
Employee benefits expense 1,772.38 1,979.50
Other expenses 240.70 319.82
Operating Profit 1,046 804
OPM% 34% 26%
Other income 208.29 193.15
Finance costs 26.08 28.93
Depreciation 68.70 66.55
Profit Before tax 1,159.22 901.92
Tax Expense 245 173
Profit After Tax 893 790.42
EPS 5 4.28

Comparison With Peers:

It has shown Happiest Mind as peer. However, Happiest Mind is a pure IT company and do business in software development. On the other hand, Latent View is an analytical company. As a pure-play analytics firm, they compete with other Indian companies including MuSigma and Fractal Analytics. Their competition has historically been very fragmented with many players offering varying levels of data quantity and quality.

Recommendation on Latent View Analytics Limited IPO:

Review and Recommendation of Latent View Analytics  IPO by InvestorZone is 6/10 1. Revenue is flat in the last 3 years. However, PAT has gone up from 60 Crores to 90 Crores.  2.Company’s business model is supported by stable and recurring revenues, significant operating leverage and low capital requirements that contribute to a healthy free cash flow. 3. In a world of increasing data availability, the value proposition is shifting from the provision of core data to the generation of analytical insights to inform decision making processes and optimise workflows, across interrelated business activities. Company’s end-to-end solutions cover a comprehensive spectrum of use cases across the value chain of their clients’ businesses. 4. The Chairman, Adugudi Viswanathan Venkatraman, has several years of experience in the across IT services, credit analysis and business consulting and their co-founder Pramadwathi Jandhyala has several years of experience in corporate finance, and credit ratings. Together, the Promoters have been instrumental in establishing and growing their analytics capabilities. 5. More than 90% of the  revenue comes from US Markets especially North America.

Lead Manager of Latent View Analytics Limited IPO:

  1. Axis Capital Limited
  2. Haitong Securities India Private Limited
  3. ICICI Securities Limited

Registrar of Latent View Analytics Limited IPO:

  1. Link Intime India Private Limited

Company Address:

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 Phone: +91 044 4344 1700 Email: investorcare@latentview.com Website: https://www.latentview.com/

Discussion on Latent View Analytics Limited IPO:

12 Comments

    Its pat & eps increased but income reduced marginally. I think its future is looking good . So we may apply . Waiting for comment .

    Reply

    1. Client driven innovation: The Company designed MatchView, a platform enabling improvements in online and offline customer acquisition and retention campaigns, for a leading US-based cosmetics company striving to remain relevant to its key customer base. They have similarly designed solutions based on client requests on the back of their consultative process and functional expertise in the industries in which their clients operate.

    2. Consulting led solution: A luxury car manufacturer in Europe was looking to minimize warranty claims as the costs incurred had increased manifold and at a faster pace than increase in revenue. Latent View worked with their risk and IT teams to explore the data. They developed a scalable and self-service codefree AI platform for analytics on connected vehicles that could be used to identify vehicle usage patterns by providing data from these vehicles. The information is then used to accurately predict future claims for each driving style.

    3. IdeaLabs solutions: Latent View undertakes innovation to identify and address unmet opportunities in the industry. They discover these opportunities by learning about evolving technologies and techniques through events and conferences that they organize. Key initiatives to devise innovative solutions include participating in peer learning webinars and tech-conclaves, idea harvesting through hackathons, structure innovation through ‘IdeaLabs’, and innovation through partnership with academia. They designed Casper, an AI-driven conversational analytics platform, during such an event, and subsequently developed a usecase for it. They similarly explore new solutions with evolving technologies/ techniques, and work with their partners to translate them into use-cases for potential clients.

    Reply

    Pre-IPO Shares = 173,720,925
    New Shares to be issued = 24,060,913
    Total Shares Outstanding after IPO = 197,781,839
    PAT (FY21) = 90 Crores
    EPS = 4.56
    Issue Price = 197
    P/E = 43x

    Reply

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