Data Patterns IPO - 7 Things to Know

Data Patterns will be the second defence related company to hit the IPO market in the last few months after Paras Defence. The stellar post-listing performance of Paras will be a tailwind for Data Patterns as it goes into its IPO. Data Patterns provides defence and aerospace electronics solutions. The IPO opens on 14th December and here is the gist.
 

Seven things to know about the Data Patterns (India) Ltd IPO

1) Data Patterns (India) is into electronic hardware design, development, functional testing and validation of solutions for the defence and aerospace sector. The company also provides environment testing, verification and engineering services. It has a manufacturing unit in Chennai which handles the complete life cycle.
 

2) The IPO opens on 14-December and closes for subscription on 16-December. The basis of allotment will be finalized on 21-December while refunds would be initiated on 22-December. The shares are expected to be credited to eligible shareholders on 23-December while the stock is expected to list on the NSE and BSE on 24-December.

3) The Data Patterns IPO will comprise of a fresh issue of Rs.240 crore and an offer for sale of 59.53 lakh shares. The price band is yet to be fixed and that will determine the final size of the issue. The promoters currently have a 59.95% stake in Data Patterns (India) and post the fresh issue and the OFS, this stake will come down.

4) The company is a profit making company and the top line and the bottom line has grown sharply between FY19 and FY21. The top line revenues grew from Rs.132.51 crore in FY19 to Rs.226.55 crore in FY21. During the same period, the net profits have grown from Rs.7.7 crore to Rs.55.57 crore.

5) The proceeds of the fresh issue component will be used for prepayment of outstanding debt as well as to upgrade and expand its current manufacturing facility in Chennai. In addition, the company will also use the funds to partly fill the gaps in its working capital and for general corporate purposes.

6) Data Patterns (India) is uniquely positioned to ride the “Make in India” wave as the government focuses increasingly on indigenization of defence procurement. It also has a solid order book coming from marquee customer names. Over the last 36 years, the company has also established a consistent track record of performance and delivery.


7) The lead managers to the issue will be IIFL Securities and JM Financial Consultants. Link Intime India Private Limited will be the registrars to the issue.

While Data Patterns (India) is yet to announce the price band for the IPO, the market expectations peg the IPO price band in the region of Rs.575 to Rs.585.
 

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