Defence solutions major Data Patterns to raise Rs 588 crore via IPO

Open December 14-16 at a price band of Rs 555-585. IPO consists of fresh issue of Rs 240 crore and an OFS of Rs 348 crore, through which existing shareholders will offload 5.95 mn shares

Chennai-based Data Patterns India, a major defence and aerospace electronics solutions provider, is looking to raise Rs 588 crore through an initial public offering (IPO).

The IPO, opens between December 14-16, has a price band of Rs 555–585 per equity share. It consists of a fresh issue of Rs 240 crore and an offer for sale of Rs 348 crore, through which existing shareholders will offload 5.95 million equity shares.  

The company intends to utilise net proceeds from the fresh issue to the extent of Rs 60.80 crore for prepayment or repayment of outstanding borrowings availed by the company, Rs 95.19 crore for funding its working capital requirements, Rs 59.84 crore for upgrading and expansion of its existing facilities at Chennai and general corporate purposes. For anchor investors, the issue will be open for bidding on December 13. Promoters Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan will offload 1.97 million shares each.

Data Patterns has a net profitability growth of approximately 164 per cent between 2019-20 and 2020-21 and is one of the fastest-growing companies in the defence and aerospace electronics sector in India.  Its core competencies include electronic hardware design and development, software design and development, firmware design and development, mechanical design and development, product prototype design and development, manufacturing, functional testing and validation, environment testing and verification, and after-sales support engineering services.