Data Patterns IPO opens today: Subscribe for listing gain and with long-term view, says Anil Singhvi

Data Patterns IPO has opened for subscription on Tuesday, December 14, 2021. The three-day share sale will conclude on December 16, 2021. Data Patterns is a supplier of electronic systems to the defence and aerospace sector. The company has fixed a price band of Rs 555-585 per share for its three-day IPO.  

Data Patterns IPO comprises a fresh issue of shares worth Rs 240 crore and an offer for sale (OFS) of 59.52 lakh equity shares by promoters and individual selling shareholders. The company is expected to fetch Rs 588.22 crore at the upper end of the price band.  

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Ahead of the opening of the subscription by Data Patterns, Zee Business Managing Editor Anil Singhvi on Tuesday said that the company has experienced promoters with clean image. Besides, the company has strong financial track record, he said. Singhvi said the reasonable valuation of the issue is one of the biggest positives. "Apply for listing gain and with long-term time horizon," recommended the Market Guru.  

As far as negatives are concerned, Singhvi said it is small size company with Rs 225 crore revenue and Rs 3,000-crore market cap.

Earlier, Marwadi Shares and Finance Limited has assigned a 'subscribe with caution' rating to the IPO as well.  

आज खुलेगा डेटा पैटर्न्स का IPO, प्राइस बैंड ₹555-585#DataPatternsIPO में क्या करें?

डेटा पैटर्न्स पर क्या है अनिल सिंघवी की राय?

जानिए इस वीडियो में...

#EditorsTake | #DataPatterns | #IPOAlert #IPOToInvest | #AnilSinghvi | @AnilSinghvi_ pic.twitter.com/ZoF5JeB64I

— Zee Business (@ZeeBusiness) December 14, 2021

"We assign a “Subscribe” (With Caution) rating to this IPO as the company is one of the fastest-growing companies in the Defence and Aerospace Electronics sector. However, significant working capital requirements, client concentration, and promoter pledging keep us cautious from a long-term perspective, " said Marwadi shares and Finance Limited.  
 
Data Patterns IPO Timeline
Application start date: December 14, 2021
Application end date: December 16, 2021
Allotment begins on: December 21, 2021
Refund initiation date: December 22, 2021
Allotment date: December 23, 2021  
Listing date: December 24, 2021

About the Company
Data Patterns Ltd is among the few vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry.

Founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, Data Patterns is a vertically integrated defence and aerospace electronics solutions provider that caters to requirements across space, air, land and the sea. The company caters to the entire spectrum of defence and aerospace platforms –space, air, land and sea and has end-to-end capabilities to build and deliver complete systems, with their design and manufacturing capabilities being completely in-house.  

As per the company's DRHP, proceeds from the fresh issue will be used for repayment of debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.