Data Patterns (India) Limited's initial public offer (IPO) was subscribed 7.68 times on the second day of its issue, according to subscription data on the stock exchanges. The IPO of the electronics solutions provider opened on December 14 and will close on Thursday, December 16 - remaining open for investors for a period of three days.
On Wednesday, the portion reserved for retail individual investors was subscribed 12.42 times - the highest among the three groups of investors. The portion set aside for non-institutional investors was subscribed 5.20 times, while the portion reserved for qualified institutional buyers or QIB was subscribed 0.92 times today.
The initial public offer has a fresh issue component of up to Rs 240 crore and an offer for sale up to 59,52,550 equity shares. The company is selling shares in the price band of Rs 555-585 per share. Data Patterns collected Rs 176 crore from anchor investors.
Data Patterns intends to utilise the net proceeds from the fresh issue for debt repayment, funding its working capital, and expansion of its existing facilities besides general corporate purposes.
It is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners LLP, which holds a 12.8 per cent stake in the company.
''At the higher end of the price band, Data Patterns IPO is priced at a Price to Earnings Ratio of 54 times FY21 earnings. This seems to be lesser than MTAR Tech (135 times), Centum Electronics (190 times) and Paras Defence (190 times) but lesser than Astra Microwave and Bharat Electronics. Notably, Paras Defense, as well as MTAR Technologies, saw bumper listings recently from this space.
Given the company's steady topline growth, robust margins, good return ratios, competitive advantage in design and development capabilities, entry barriers in the industry and strong growth outlook, we remain "positive" on the prospects of the issue," SEBI-registered investment advisor INDmoney said in a report.
Data Patterns is a vertically integrated defence and aerospace electronics solutions provider that caters to requirements across space, air, land, and sea.
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