Data Patterns (India) IPO subscribed 7.68 times

The offer received bids for 5.44 crore shares as against 70.97 lakh shares on offer.

The initial public offer (IPO) of Data Patterns (India) received bids for 5,44,91,050 shares as against 70,97,285 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (15 December 2021). The issue was subscribed 7.68 times.

The issue opened for bidding on Tuesday (14 December 2021) and it will close on Thursday (16 December 2021). The price band of the IPO is fixed at Rs 555-585 per share. An investor can bid for a minimum of 25 equity shares and in multiples thereof.

The current IPO comprises a fresh issue aggregating to Rs 240 crore and an offer for sale (OFS) of upto 59,52,550 equity shares.

Ahead of the IPO, the company on Monday, 13 December 2021, finalized allocation of 30,16,533 equity shares to anchor investors at an allocation price of Rs 585 per share, aggregating to Rs 176.46 crore.

Earlier in November 2021, the company made a private placement (pre-IPO placement) of 1,039,861 equity shares at Rs 577 each, aggregating to Rs 60 crore.

The proceeds from the issue will be used to repay debt, meet working capital needs and upgrading and expanding its existing facility at Chennai (Tamil Nadu) to the tune of Rs 60.803 crore, Rs 95.191 crore and Rs 59.839 crore respectively. The aggregate outstanding indebtedness of the company as of 20 November 2021 stood at Rs 62.248 crore.

Data Patterns (India) is a vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry. It offers products catering to the entire spectrum of defence and aerospace platforms such as space, air, land and sea. The major products or product groups of the company comprises of radars, underwater electronics /communications /other systems, electronic warfare suite, BrahMos programme, avionics, small satellites, ATE for defence and aerospace systems and Commercial off the shelf (COTS).

The core competencies of the company 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. It has design capabilities across the entire spectrum of strategic aerospace and defence electronics solutions including processors, power, radio frequency and microwave equipment, embedded software and firmware and mechanical engineering.

The company has invested in and developed reusable building block model leading to capabilities / competence across various product domains. This approach has allowed it to achieve better margins due to spreading out of development costs over multiple programmes, in addition to saving on development time for new products.

The company reported a net profit of Rs 23.21 crore and sales of Rs 96.45 crore for the six months ended September 2021.

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