Data Patterns - Board Approves QIP Of Rs 500 Crore: ICICI Direct

The board has approved the allotment of 40.97 lakh shares through QIP at an issue price of Rs 1220.31 per share.

<div class="paragraphs"><p>Data Patterns Ltd. namesign. (Source: Company website)</p></div>
Data Patterns Ltd. namesign. (Source: Company website)

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ICICI Direct Report

Data Patterns India Ltd. is a vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry.

  • The board has approved the allotment of 40.97 lakh shares through qualified institutional placement at an issue price of Rs 1220.31 per share (face value at 2), aggregating to Rs 500 crore.

  • Issue price is at a discount of 5% on the floor price and 7.1% discount to Monday’s closing. Promoter holding post the issue will be diluted to 42.4% from 45.8% with earnings per share dilution at 7.3%.

  • Net proceeds to be utilised mainly towards funding working capital requirements, investment in product development, debt repayment and capex.

Key triggers for future price performance:

  • Strong order inflows with healthy pipeline of orders worth Rs 2,000-3,000 crore in the next two to three years provides strong visibility.

  • Defence electronics provides an opportunity of ~Rs 1.5 lakh crore in the next four to five years led by armed forces’ requirement of advanced systems.

  • Fire control system for BrahMos missile, avionics for light combat aircraft, radar warning receiver for fighter aircraft, electronic intelligence for airborne and ground platform and radar subsystems are key orders in the pipeline in FY23 for Data Patterns.

Click on the attachment to read the full report:

ICICI Direct Data Patterns Company Update.pdf
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