Data Patterns IPO subscribed 119.62 times on final day; QIB portion booked 191 times

The Rs 588 crore initial public offering (IPO) of Data Patterns (India) Limited, a vertically integrated defence and aerospace electronics solutions provider, saw a strong response from investors and was subscribed 119.62 times on Thursday, December 16, 2021, the last day of subscription. The issue saw bids for 84,89,85,725 equity shares against IPO size of 70,97,285 equity shares.

The Qualified Institutional Buyers (QIBs) portion was subscribed 190.86 times. QIBs placed bids for 37,38,56,275 equity shares against a portion of 19,58,847 equity shares. The Non-Institutional Investors (NIIs) portion was subscribed 254.22 times as they bid for 39,18,89,825 shares against 15,41,532 shares reserved for them. The Retail Individual Investors (RIIs), meanwhile, placed bids for 8,32,39,625 shares against 35,96,906 shares on offer, which is 23.14 times.

The price band for the offer was fixed at Rs 555-585 per equity share. The maiden issue comprised of a fresh issue component up to Rs 240 crore and an offer for sale (OFS) up to 59,52,550 Equity Shares (including Anchor portion of 30,16,533 Equity Shares) worth Rs 348 crore. The retail investors were allowed to place a bid for a minimum of 25 equity shares worth Rs 14,625 and in multiples thereafter up to Rs 2 lakhs.

JM Financial Limited and IIFL Securities Limited are the Book Running Lead Managers of the issue while Link Intime India Private Limited is the registrar.

The company intends to utilize the net proceeds from the fresh issue to the extent of Rs 60.8 crore for prepayment/repayment of certain outstanding borrowings availed by the company. Rs 95.2 crore will be used for funding its working capital requirements and Rs 59.8 crore will be used for upgrading and expansion of its existing facilities at Chennai and general corporate purposes.

It is likely the shares of Data Patterns will list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 24, 2021.

IPO Timeline

• Bidding Period for the IPO: December 14-16, 2021.
• Allotment: December 21, 2021.
• Initiation of Refunds: December 22, 2021.
• Credit of Shares to Demat Account: December 23 2021.
• IPO Listing: December 24, 2021.

Data Patterns (India) is among the few vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry. It has design capabilities across the entire spectrum of strategic defence and aerospace electronics solutions including processors, power, radio frequencies ("RF") and microwave, embedded software and firmware and mechanical engineering. Its 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.