Mumbai: Shares of defence and aerospace electronics solutions provider Data Patterns India on Friday listed at a nearly 48% premium to its IPO price of ₹585.
The stock debuted at ₹864 on the BSE and at ₹856.05 on the NSE. The stock ended the day at ₹754.85 on the BSE, up 29% over the issue price. The ₹588.2-crore IPO of the Chennai-based company was subscribed 119.62 times.
Priced in a range of ₹555 to ₹585 per share, Data Patterns’ IPO had a fresh issue component of up to ₹240 crore and an offer for sale of up to 59.5 lakh shares.
The company will use the proceeds to repay loans, support working capital as well as upgrade and expand facilities at Chennai.
Hem Securities and AngelOne had given a subscribe rating to the IPO of Data Patterns.
“…as per the RHP (red herring prospectus), the company is expected to be a major participant in at least ₹1,500 crore worth of contracts over the next three years. At ₹585 per share, the company is commanding trailing 12 months price to earnings of 36 times which is lower than trailing multiples of MTAR and Astra Microwave,” said AngelOne.
Hem Securities said Data Patterns’ innovation focused business model with a sound order book and consistent track record of profitable growth due to a scalable business model make this attractive to deploy funds.
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