The Data Patterns (India) Limited
public
issue will hit the primary request on December 14 and will be open to subscription for the coming two days.
Data Patters (India) is among the many vertically integrated players furnishing results related to defence and aerospace electronics. Incorporated in 1985, it offers products to the entire diapason of defence and aerospace platforms – space, air, land and ocean, and is well deposited to profit from the
government
of India’s‘ Make in India’ drive. rnThe company has established itself as a leading results provider to the indigenously developed defence products assiduity through its in- house design capabilities across the diapason of strategic defence and aerospace electronics results, including processors, power, radio frequentness and fryer, bedded software and firmware, and mechanical engineering.
Its products have been used in flagship defence systems like Light Combat Aircraft, BrahMos bullet programme and Light Mileage Copter, and defence systems designed by DRDO (Defence Research and Development Organisation).
The public issue comprises a fresh issue of shares worth Rs 240 crore and an offer-for- trade of equity shares by dealing shareholders to garner Rs588.2 crore. The price band for the offer has been fixed at Rs 555 – 585 per share of face value Rs 2 each.
The allotment of shares will get finalised by December 21 and unprofitable investors will get refunds by December 22. Successful stab will get shares in their demat accounts by December 23.
Data Patterns’ shares will list on the BSE and the NSE on December 24.
The company intends to use the proceeds for repayment and prepayment of certain debts, funding its working capital conditions, elevation and expansion of its being installations at Chennai, and for general commercial purposes.
The promoters hold57.08 percent in the company and their holding will come down to44.99 percent after this issue.
What Brokerages Say
Utmost brokerages advise investors to‘ subscribe for listing earnings’ grounded on the fact that the company has a strong order book of Rs 589 crore, has been performing profitably for the once three fiscal times and has been part of crucial defence systems due to its specialised capabilities.
“ Innovation- concentrated business model, harmonious track record of profitable growth due to a scalable business model and sound order book across product orders supplying to marquee guests in the defence and aerospace assiduity are crucial competitive strengths of the company,” said brokerage establishment Marwadi Financial Services.
The pledging of26.2 percent of paid-up capital with State Bank of India by the protagonist and the company’s dependence on limited base of guests, still, pose a threat to the long- term prospects of the business, the brokerage refocused out.
To be sure, top five guests of the company contribute88.79 percent to the total profit.
“ Considering the September tracking twelve months (TTM) EPS of Rs16.41 on apost-issue base, the company is going to list at a P/ E of35.64 x with a request cap of Rs crore, while its peers videlicet Paras Defence and Space Technologies and MTAR Technologies are trading at a P/ E of 191x and 130x, independently,” said Marwadi. rnIt assigns a‘ subscribe (with caution)’ standing to this IPO as the company has significant working capital conditions, customer attention and protagonist pledging.
“ We believe Data Patterns’ design and make capabilities across the entire diapason of strategic defence and aerospace electronics results at competitive prices and its capability to mate with guests from generality till deployment will help it work its operating edge in the coming times,” said Yes Securities, assigning a‘ subscribe for listing earnings’ standing to the issue. rnYes Securities highlights that the company faces pitfalls from its dependence on government capex, maturity of its business is through competitive bidding process and any increase in competition may affect in price reductions, reduced profit perimeters and loss of request share.
“ Data Patterns has a proven track record of functional excellence as well as an order book that gives good visibility for the near term,” said Asit C Mehta Investment Interposers in its report. rnAt the upper price band of Rs 585, stock is priced at54.62 x its FY21 EPS of Rs10.71 ( grounded on completely adulterated post issue equity), it said, suggesting‘ subscribe for listing earnings’ standing to the issue.
Anchor Investors rnData Patterns on December 13 finalised the allocation of equity shares to anchor investors, at a price of Rs 585 per equity share to garner Rs176.5 crore.
Axis Mutual Fund, Ashoka India Openings Fund, HDFC Mutual Fund, ICICI Prudential, Aditya Birla Sun Life Trustee, Nippon Life, Kotak Mutual Fund, IIFL Concentrated Equity Fund, PGIM India Trustee, Tata Mutual Fund,
hdfc
Life Insurance, Volrado Venture Mates Fund and Nomura were the crucial actors in the anchor book.