Data Patterns (India) IPO opens: Should you subscribe to the issue?

Most brokerages advise investors to subscribe for listing gains to the company's issue based on the fact that it has a strong order book and has been performing profitably for the past three years.

Yes Securities recommends a 'subscribe' rating on Data Patterns IPO issue as they see reasonable listing gains given it being a) Indigenous, integrated and strategic electronic solutions provider, 2) innovation-focused business models, 3) experienced management team with a skilled workforce and 4) modern certified manufacturing facility enabling it to consistently offer quality and complex components allowing to build a robust relationship with its customers.

Marwadi Financial Services assigns a ‘subscribe (with caution)’ rating to the IPO as the company has significant working capital requirements, client concentration and promoter pledging.

Capital Market has a 'may subscribe' rating for the IPO given over three decades of presence (including through its erstwhile subsidiary) in defence and aerospace electronics space and strong proven in-house design, development and manufacturing capacity across the entire spectrum of aerospace and defence electronics.

The brokerage said that the company is well-positioned to take part in land, airborne and naval defence programmes as well as space programmes of the country.