Defence and aerospace electronics solutions provider, Data Patterns (India) Ltd launched its three-day initial public offering (IPO) today. The public issue comprises a fresh issue of shares worth Rs 240 crore and an offer for sale (OFS) of 59.52 lakh equity shares by promoters and individual selling shareholders.
The OFS includes the sale of up to 19.67 lakh shares each by Srnivasagopalan Rangarajan and Rekha Murthy Rangarajan, up to 75,000 by Sudhir Nathan, up to 4.15 lakh equity shares by G.K. Vasundhara and up to 15.28 lakh equity shares by other existing shareholders.
The company has fixed a price band of Rs 555-585 per share for its three-day IPO. Data Patterns raised Rs 176 crore from anchor investors a day before its IPO launch on Tuesday.
The proceeds will be used to prepay and repay certain debts, support working capital requirements, upgrade and expand the company's existing facilities in Chennai, and for other general corporate purposes.
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.
First Published: Dec 14, 2021 8:55 AM IST
