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Data Patterns IPO Draws Retail Interest

Issue was subscribed 7.68 times on Day 2

The IPO of Data Patterns, a defence and aerospace electronics solutions provider, saw strong retail investor interest on day 2

MUMBAI, Dec 15 (The CONNECT) - The initial public offering of Data Patterns (India) Limited, a vertically integrated defence and aerospace electronics solutions provider saw strong retail investor interest on day 2, today.

The offer received bids for 5,44,91,050 shares against the offered 70,97,285 equity shares, as per the data available on the bourses at 5 pm today. The issue closes tomorrow.

Retail investors had put in bid 12.42 times the shares reserved for them, while the part set aside for non-institutional investors was subscribed 5.20 times. Qualified institutional buyers portion was subscribed 0.92 times. Overall the issue was subscribed 7.68 times.

The primary offering is entirely an offer for sale (OFS) shares with a face value of Rs 2 each, in which its existing shareholders and promoters are offloading equity shares in the range of Rs 555 – 585 each.

The public issue comprises a fresh issue of Rs 240 crore and an offer for sale of 59,52,550 equity shares by promoter and individual selling shareholders. The OFS includes sale of up to 19,67,013 equity shares by Srnivasagopalan Rangarajan, up to 19,67,012 equity shares by Rekha Murthy Rangarajan, up to 75,000 equity shares by Sudhir Nathan, up to 4,14,775 equity shares by G.K. Vasundhara and up to 15,28,750 equity shares by existing shareholders.

Data Patterns core competencies include design and development across electronic hardware, software, firmware, mechanical, product prototype besides its testing, validation and verification. Its involvement has been across Radars, Underwater Electronics/Communication and Other Systems, Electronic Warfare Suites, Avionics, Small Satellites, Automated Test Equipment, COTS and programmes catering to Tejas Light Combat Aircraft, Light Utility Helicopter, BrahMos and other Communication and Electronic Intelligence Systems.

The company works closely with the defence PSUs such as Hindustan Aeronautics Ltd and Bharat Electronics Ltd as well as government organisations involved in defence and space research like DRDO.

The company's order book has grown at a CAGR (compound annual growth rate) of 40.72 per cent over the last four years and as of Sep 2021 stood at Rs 581.3 crore.

On Monday, Data Patterns raised Rs 176 crore from anchor investors, who were allotted 30,16,533 equity shares at the upper price band of Rs 585 per share.

The anchor book has seen a strong participation from domestic mutual funds (HDFC MF, ICICI Pru MF, Axis MF, Kotak MF, Birla MF, Nippon MF, FT MF, Tata MF, PGIM MF and IIFL MF), life insurance companies (HDFC Life and Tata AIA Life) and other institutional investors (Nomura Funds, White Oak Capital and Enam)

Axis Mutual Fund and White Oak Capital picked up the largest allocation of 11.4% each for approximately Rs 20 crs, across their various schemes. Axis MF and White Oak Capital had also invested Rs 35 crs and Rs 10 crs respectively in a Pre-IPO placement concluded last month by the company. The other investor in the Pre-IPO round was IIFL with Rs 15 crs investment – IIFL MF has been allocated 6.8% of the anchor book amounting to Rs 12 crs. 

Nomura Funds, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sunlife Mutual Fund, Kotak Mahindra Mutual Fund, Nippon Life India Mutual Fund and PGIM India Mutual Fund – each of these institutions were allocated 205,650 shares for approximately Rs 12 crs each across their various schemes. Other institutions viz. Tata Mutual Fund, Franklin Templeton Mutual Fund, HDFC Life, Tata AIA Life and Enam has been allotted 170,950 shares for approximately Rs 8 crs each

JM Financial Limited, IIFL Securities Limited are the book running lead managers to the issue.

For FY21, the company's revenue from operations was at Rs 226.55 crore against Rs 160.19 crore in the preceding fiscal year. Its net profit for the period stood at Rs 55.57 crore as compared to Rs 21.05 crore in 2019-20.

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