Data Patterns, which is set to open its intial public ogfferings (IPO) on Tuesday, has raised Rs 176 crore from anchor investors.
The Chennai-based company is looking to raise Rs 588 crore through the IPO with a price band of Rs 555 to Rs 585 per share. It has allotted 30.16 lakh equity shares to the anchor investors.
The IPO will be open for subscription on Tuesday viz December 14 and will get close on December 16.
Accoridng to a report published by Business Insider, the company will use the proceeds from the fresh issue towards repayment of debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.
Interestingly, the IPO may gain good traction given the shares of Data Patterns are commanding a premium of Rs 550 per share in the grey market, the report added.
Incorporated in 1985, Data Patters (India) is among the few vertically integrated players providing solutions related to defence and aerospace electronics. It offers products to the entire spectrum of defence and aerospace platforms – space, air, land and sea, and is well positioned to benefit from the government of India’s ‘Make in India’ push.
In the meantime, check what analysts/brokerage houses are saying about the IPO, according to report published by Moneycontrol.
Marwadi Financial Services
Innovation-focused business model, consistent track record of profitable growth due to a scalable business model and sound order book across product categories supplying to marquee customers in the defence and aerospace industry are key competitive strengths of the company.
The brokerage house assigns a ‘subscribe (with caution)’ rating to this IPO as the company has significant working capital requirements, client concentration and promoter pledging.
The investment firm aassign a ‘subscribe for listing gains’ rating to the issue. It believed that the company’s design and build capabilities across the entire spectrum of strategic defence and aerospace electronics solutions at competitive prices and its ability to partner with customers from conception till deployment will help it leverage its operating efficiencies in the coming years.
Asit C Mehta Investment Intermediaries
Data Patterns has a proven track record of operational excellence as well as an order book that gives good visibility for the near term. At the upper price band of Rs 585, stock is priced at 54.62x its FY21 EPS of Rs 10.71 (based on fully diluted post issue equity), it said, suggesting ‘subscribe for listing gains’ rating to the issue.