Data Patterns Listing today: Expert hints at bumper listing for this IPO

Data Patterns, a vertically integrated defence and aerospace electronics solutions provider that caters to requirements across space, air, land and sea, will be listed on the exchanges tomorrow, December 24, 2021. Data Patterns IPO was subscribed a whooping 119.62 times on the final day.  

Ahead of the listing of shares of Data Patterns, the analyst expects a strong listing for the public offer on Friday. Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd feels that the company has the potential to grow rapidly and exponentially as part of the 'Make in India' initiative.

He said the positive sentiment is likely to accompany the IPO and the company, owing to the defense sector's attractiveness and GMP hints at a stellar debut for this defence and aerospace electronics solutions provider.  

See Zee Business Live TV Streaming Below:

"At an upper price band of Rs 585, the IPO is priced at a PE ratio of 49x and a P/BV ratio of 13x to FY21 earnings. Based on the GMP currently, we can expect a 35% listing gain," said the analyst.

Aayush advised investors, who got allotments, to hold the stock.  "New investors can look for buying opportunities at any correction or consolidation," he suggested.  

Earlier, saying that the IPO has been floated at a reasonable valuation, Zee Business Managing Editor Anil Singhvi had recommended to apply for listing gain and with a long-term time horizon.

Founded by Srinivasa Gopalan 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 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 completed in-house.  

The company plans to use the proceeds from the fresh issue for repayment of the debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.

Key things to know about Data Patterns (Source: Marwadi Shares and Finance Limited)

*With net profitability growth of approximatly 164% between Fiscal 2020 and Fiscal 2021, the company is one of the fastest growing companies in the Defence and Aerospace Electronics sector in India.

*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.

*Between Fiscal 2019 and Fiscal 2021, the company was amongst the highest growing companies in terms of revenues amongst key Indian defence and aerospace companies, with a growth of 71% in revenues during this period.

*The company's 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, functional testing and validation, environment testing and verification, and engineering services opportunities.

*The order book of the company has increased from ₹ 1,786.98 million as on April 1, 2018 to ₹ 5,812.98 million as on September 30, 2021 at a CAGR of 40.08%, indicating a scalable business model. 

Data Patterns IPO comprised 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 had fixed a price band of Rs 555-585 per share for its three-day IPO.  Data Patterns IPO has opened for subscription on December 14, 2021and conclude on December 16, 2021.