Data Patterns IPO to launch today: 10 points
- Data Patterns, which supplies electronic systems to the defence and aerospace sector of the country, was founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan.
Data Patterns (India) Ltd is set to launch its initial public offering (IPO) on Tuesday, with a fixed price band of ₹555-585 a share. The bidding will continue till December 16. For anchor investors, the bidding already opened on December 13.
Data Patterns, which supplies electronic systems to the defence and aerospace sector of the country, was founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan. It is a solutions provider company that caters to the indigenously developed defence products in the aerospace and defence industry.
Data Patterns works closely with defence PSUs such as Hindustan Aeronautics Ltd and Bharat Electronics Ltd as well as government organisations involved in defence and space research like the Defence Research and Development Organisation (DRDO).
Here are key things to know about Data Patterns IPO:
1. Data Patterns IPO is expected to fetch ₹588.22 crore and the company intends to use the proceeds for repayment of debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.
2. Investors will be able to apply for Data Patterns IPO in lots. They can bid for a minimum of 25 equity shares and in multiples of 25 shares thereof. Retail investors can invest a minimum of ₹14,625 for a single lot and their maximum investment would be ₹1,90,125 for 13 lots.
3. Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.
4. The public issue comprises a fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of 59.52 lakh equity shares by promoters and individual selling shareholders.
5. The offer for sale includes the sale of up to 19,67,013 equity shares by Rangarajan. It also includes up to 19,67,012 equity shares by director Rekha Murthy Rangarajan; up to 75,000 equity shares by Sudhir Nathan, up to 4,14,775 equity shares by GK Vasundhara and up to 15,28,750 equity shares by existing shareholders.
6. The company is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners LLP, which holds a 12.8 per cent stake in the company.
7. Data Patterns developed the first nanosatellite "NiUSAT" which was deployed in 2017. In addition, two more satellites are in progress, according to news agency PTI.
8. The company's order book has grown at a compound annual growth rate of 40.72 per cent over the last four years and as of July 2021 stood at ₹582.30 crore.
9. For FY21, Data Patterns’ revenue from operations was at ₹226.55 crore against ₹160.19 crore in the preceding fiscal year. Its net profit for the period stood at ₹55.57 crore as compared to ₹21.05 crore in 2019-20.
10. IIFL Securities and JM Financial are the book running lead managers to the issue.
(With agency inputs)