Data Patterns IPO Review: Data Patterns initial public offer (IPO) will open for subscription on December 14th, 2021, and close on December 16th, 2021. The Chennai based company is looking to raise Rs. 588.22 crores through the IPO. In this article, we take a closer look at the Data Patterns Ltd IPO Review and its possible future prospects. Keep Reading to find out!
Table of Contents
About the Company
Founded in 1985, Data Patterns (India), is a defence and aerospace electronics solutions provider based in Chennai. The company caters to indigenously developed defense products industry. The company designs strategic defence and aerospace electronics solutions including processors, power, radio frequencies and microwave, embedded software and firmware and mechanical engineering. These products are used across all 4 spectrums of defense and aerospace platforms i.e. space, air, land and sea.
The company’s manufacturing facility in Chennai is a 100,00 sq ft factory. The factory has facilities for design, manufacturing and life cycle support of high-reliability electronic systems used in defense and aerospace applications. Data Patterns also plans to further expand their facility through the purchase of adjacent 2.81 acres of land. Their current facility is spread across 5.75 acres.
The company reported its highest ever net profit of Rs. 55.57 crores last FY, This is more than double the profits it had earned the year before. During this period the company’s revenues increased from Rs. 156 crores to Rs. 223.9 crore.
Is Valuation of IPOs Justified? What are the Causes for the Valuations?
Grey Market Premium
Shares of Data Patterns traded at a 42% premium in the grey market as of 10th December.. The shares are traded at a price of Rs.835. This gives it a premium of Rs 250 over the issue price band of Rs.555-585 per share.
Key IPO Information
Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan are the promoters of the company. They have appointed JM Financial and IIFL Securities as the lead managers to the issue. Link Intime India have been appointed as the registrar to the issue. ParticularsDetails IPO Size₹588.22 Cr Fresh Issue₹240.00 Cr Offer for Sale (OFS)₹348.22 Cr Opening dateDec 14, 2021 Closing dateDec 16, 2021 Face Value₹2 per equity share Price Band₹555 to ₹585 Lot Size25 Minimum Lot Size1 Maximum Lot Size13 Listing DateDec 24, 2021
Purpose of the IPO
The proceeds of the IPO will be used for
Prepayment or Repayment of borrowings
Funding working capital requirements
Upgrading And expanding its facility at Chennai
Other general corporate purposes.
In this article, we covered the Data Patterns IPO Review. The Initial Public Offering opens on December 14th and closes on December 16th. The IPO will follow Paras Defence which was one of the most bought IPO’s in India at 304 times. For investors, it can be a good opportunity to look into the company and apply for the IPO after analysing the prospects and strengths. Let us know what you think about the Data Patterns IPO review in the comments below? Happy Investing!
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