Data Patterns’ stock makes an electrifying debut, closes

 Data Patterns’ stock makes an electrifying debut, closes 29% premium to the issue price

Data Patterns (India) Limited (the “Company”), a vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry, listed on the NSE at Rs 856.05 at 46.33% premium over its issue price. The scrip got listed at BSE at Rs 864 per share, a 47.69% per cent premium over its issue price of Rs 585. The shares of the company at day end closed at Rs. 754.85 per share on BSE and at Rs 750.50 per share on NSE. The initial public offering was offered at a lower price band of Rs 555 per share and higher price band of Rs 585 per equity share.

As per BSE, the total quantity traded stood at 10.44 lakh shares with a delivery quantity percentage of 43.95%. Total Quantity traded at NSE stood at 134.92 lakh shares with a delivery quantity percentage of 33.60%. Total Turnover (BSE+NSE) on Day 1 stood at Rs 1167.92 crore.

Mr. Srinivasagopalan Rangarajan, Chairman and Managing Director, Data Patterns (India) Limited said "Today marks an important milestone for Data Patterns, sincere gratitude to all stakeholders and investors who have bestowed their faith in us. This is beginning of journey for us and we are committed to long term shareholder value accretion in long run through consistent performance growth. We appreciate the responsibility given to us and will work harder to deliver returns to all our shareholders".

The Market Capitalization of the Company post today’s closing price stood at Rs. 3916.66 crore as per BSE and Rs. 3894.09 crore as per NSE.

The public issue comprises a fresh issue of Rs 240 crore and an offer for sale of 59,52,550 equity shares by the promoter and individual selling shareholders and the issue was closed on 16th December 2021. The portion reserved for retail investors was subscribed 23.14 times. While the Qualified Institutional Buyer category was subscribed 190.86 times, the Non-Institutional Investor category was subscribed 254.22 times. Overall the issue was subscribed 119.62 times.

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

Company Information

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.

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.

Initial public offering of Data Patterns (India) Limited’s

 Initial public offering of Data Patterns (India) Limited’s 

to open on 14^th December 2021

·         Price Band of ₹ 555 – ₹ 585 per equity share bearing face value of ₹ 2 each (“Equity Shares”).

·         Bid/Offer Opening Date – Tuesday, December 14, 2021 and Bid/Offer Closing Date – Thursday, December 16, 2021.

·         Minimum Bid Lot is 25 Equity Shares and in multiples of 25 Equity Shares thereafter.

·         The Floor Price is 277.50 times the face value of the Equity Share and the Cap Price is 292.50 times the face value of the Equity Share.

Risks to Investors: • Average Cost of acquisition of Equity Shares for the Selling Shareholders ranges between  ₹ 0.36 to  ₹ 63.65 and offer price at the upper end of the price band is ₹ 585  • Details of Acquisition of all Equity Shares transacted in last three years and one year:

Period	Weighted Average Cost of Acquisition Price (in  ₹)*	Upper end of the price band (₹ 585) is ‘X’ times the Weighted Average Cost of Acquisition	Range of acquisition price: Lowest Price -Highest Price (in  ₹)*
Last 1 year	109.71	5.33	0.00 – 577.00
Last 3 years	109.71	5.33	0.00 – 577.00

 

* Price has been calculated by adjusting for split and bonus of equity shares

• Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 18.94%. • The two BRLMs associated with the Offer have handled 39 public issues in the past three years, out of which 13 issues closed below the issue price on listing date. 

Data Patterns (India) Limited, vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry is proposing to open the Bid/Offer Period in relation to its initial public offering of Equity Shares (the “Offer”) on Tuesday, December 14, 2021. The Bid/Offer Period will close on Thursday, December 16, 2021. The Price Band for the Offer has been fixed at ₹ 555 – ₹ 585 per Equity Share.

The public issue comprises a fresh issue of Rs 240 crore and an offer for sale of 59,52,550 equity shares by 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.

Florintree backed defence and aerospace electronics company has undertaken a pre-IPO placement of 10,39,861 equity shares aggregating for up to Rs 60 crore. The company intends to utilise net proceeds from the fresh issue to the extent of Rs 60.80 crore for prepayment / repayment of certain 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.

Data Patterns has a net profitability growth of approximately 164% between Fiscal 2020 and Fiscal 2021 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

The Company, in consultation with BRLM’s to the Offer, considered participation by Anchor Investors in accordance with the SEBI ICDR Regulations, whose participation shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Monday, December 13, 2021. The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended read with Regulation 31 of the SEBI ICDR Regulations. The Offer is being made through the Book Building Process, in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the red herring prospectus dated December 03, 2021 (“RHP”) filed with the Registrar of Companies, Tamil Nadu at Chennai (“RoC”).