Data Patterns IPO oversubscribed by 119.62 times on the last day

Data Patterns IPO

On Thursday, the last day of bidding, Data Patterns‘ initial public offering (IPO) was oversubscribed by 119.62 times. In comparison to the IPO size of 70.97 lakh shares, the offer has received bids for Rs 84.89 crore shares. Bidding on the company’s shares, which supply electronic systems to the defence and aerospace industries, was open until 5 p.m. on December 16.

Data Patterns IPO Subscription

The Data Patterns initial public offering (IPO) involves a share capital issue of Rs 240 crore and OFS of equity worth Rs 348 crore by founders and current shareholders. The Chennai-based company has established a price band of Rs 555-585, with investors able to bid in increments of 25. One lot of Data Patterns shares is worth Rs 14,625, at the top end of the price band.

The issue allocated for qualified institutional buyers (QIBs) was subscribed 190.86 times. They placed bids for 37.38 crore shares, out of a total of 19.58 lakh. Meanwhile, retail investors bid for 8.32 crore shares, or 23.14 times the amount set out for them. Non-institutional investors, on the other hand, bought 39.18 crore shares, more than 254.22 times the amount set aside for them in the IPO.

Further Key Takeaways

The IPO of the Chennai-based company was subscribed 7.68 times on Wednesday, the second day of bidding. The firm claimed on December 13, a day before the IPO, that it had received Rs 176 crore from anchor investors. On December 24, Data Patterns’ shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Apart from basic corporate reasons, the company plans to use the net proceeds from the new issue to repay debt, provide working capital, and upgrade and expand its existing facilities. Florintree Capital Partners LLP, which owns a 12.8 percent stake in Data Patterns, is funded by former Blackstone. IIFL Securities and JM Financial are the offer’s managers, and they work closely with defence PSUs as well as government organisations involved in defence and space research like DRDO.

About the Company

Data Patterns is one of India’s few vertically integrated defence and aerospace electronics solution providers. In the sector of defence and aerospace electronic systems, it is one of India’s fastest-growing companies.

For more than three decades, the company’s key strength has been defence and aerospace electronics. The company’s goods and services cover a wide spectrum of platforms, from space to land to sea. Processors, power supplies, radio frequencies and microwaves, embedded software and firmware, and mechanical engineering are just a few of the design areas where the organisation excels.

Competitive Analysis

• The company has an indigenous integrated and strategic defence and aerospace electronics solutions provider to leverage on the Make in India mission.
• The company’s business model is focused on innovation.
• It has a robust order book in all product areas, supplying major defence and aerospace businesses.
• It features an internationally accredited manufacturing plant in a modern and well-equipped corporation.
• The company has a track record of effective expansion thanks to its scalable business approach.
• They have well-trained personnel and an experienced management team.

Frequently Asked Questions (FAQs)

Q1. How much does Data Patterns IPO require as a minimum investment?

If investors want to invest, they must apply for 25 shares at the lower price band of Rs 555 a share = Rs 13,875 each. The minimum amount to apply to the highest price band is Rs 25 x 585 = Rs 14,625.

Q2. Is it a good idea to invest in the Data Patterns initial public offering?

Over the last three and a half years, the company’s revenue has consistently increased. Over the last three and a half years, margin growth has been remarkable. Profit margins more than quadrupled from FY19 to FY21.

Q3. Who are the Data Patterns IPO‘s lead managers?

The IPO’s lead managers are JM Financial Consultants and IIFL Securities Ltd.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.