Data Patterns shares make a strong debut, stock lists at 28% premium

The stock of defence and aerospace electronics solutions provider Data Patterns made a strong debut on the bourses on Friday. It got listed at Rs 856, a 46 per cent premium to its issue price but gave up some gains and ended the session at Rs 750 — 28.2 per cent premium to its issue price.

After listing, the company commands a market capitalisation of Rs 3,894 crore.

Data Patterns' initial public offering (IPO) was subscribed 120 times. The qualified institutional buyer (QIB) portion was subscribed 186 times; the HNI portion was bought 260 times, and the retail portion was purchased 23.6 times.

The company had priced its IPO between Rs 555 and 585 a share. The Rs 588-crore IP0 comprised a fresh issue worth Rs 240 crore and OFS worth Rs 348 crore. Ahead of its public issue, the company raised Rs 176 crore from anchor investors.

HDFC MF, ICICI Pru MF, Axis MF, Kotak MF, Birla MF, HDFC Life, Tata AIA Life, Nomura Funds, White Oak Capital, and Enam were the investors allotted shares through the anchor book.

Data Patterns caters to the defence products industry. The company's core competencies include electronic hardware design and development, software design and development, firmware design and development, and engineering services. The firm’s manufacturing facility in Chennai has facilities for design, manufacturing, qualification, and life-cycle support of high-reliability electronic systems used in defence and aerospace applications.

The company is also planning to acquire 2.81 acre for further expansion. As of July 31, 2021, Data Patterns had 760 employees with more than 450 qualified engineers.

The company plans to utilise the proceeds of the issue for repayment of its debts, funding working capital requirements, and upgrading its facilities in Chennai.