Can you tell me some highlights of the forthcoming Data Patterns (India) IPO?
Answer
Answer
Here are some of the highlights of the Data Patterns IPO, that opens next week.
a) The Data Patterns IPO opens for subscription on 14-December and closes on 16-December. The basis of allotment will be finalized on 21-December while the stock is expected to list on the NSE and BSE on 24-December.
b) The overall IPO will have 2 parts. It will comprise a fresh issue of Rs.240 crore and an offer for sale of 59.53 lakh shares. The price band is yet to be decided and that will determine the actual size of the issue in the final analysis.
c) Data Patterns is a profit making company with sharp growth in the top line and the bottom line between FY19 and FY21. Total revenues grew from Rs.132.51 crore in FY19 to Rs.226.55 crore in FY21 while net profit is up 7-fold at Rs.55.57 crore.
d) The company plans to use the proceeds from the fresh issue component to repay or prepay outstanding loans and deleverage the balance sheet. It will also use the funds to upgrade and expand its existing manufacturing facility in Chennai.
e) Data Patterns (India) essentially caters to the defence and aerospace sector in India providing them electronic solutions. It is positioned to ride the “Make in India” plan with focus on indigenization of defence procurement. That should boost Data Patterns.