Data Patterns IPO sails through on first day of issue

NEW DELHI: The initial public offering (IPO) of Data Patterns was fully subscribed on the first day of bidding on Tuesday thanks to strong interest from retail and HNI investors.

The issue saw applications for 2,34,31,875 shares against on offer 70,97,285 shares. The issue was subscribed 3.3 times by 5:00 pm.

On the block, the issue consists of fresh equity shares worth Rs 240 crore, whereas existing shareholders and promoters will offload 5,952,550 equity shares aggregating to Rs 348.22 crore.


Promoters Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan will offload 19,767,012 shares each, whereas Sudhir Nathan, GK Vasundhara and other shareholders will sell more than 20,00,000 million shares.

Investors can bid for a minimum of 25 equity shares and in multiple of 25 thereof in the fixed range of Rs 555-585 apiece. The issue can be subscribed till December 16, Thursday.

The company majorly garnered positive reviews and ratings from the brokerage firms being a play on the defence sector in the long term. However, a few of them have flagged the concerns over higher valuations.

Brokerage firm Yes Securities has suggested to 'subscribe' to the issue considering its reasonable valuations and complex components allowing it to build a robust relationship with its customers.

"We believe the company's design and build capabilities across the entire spectrum of strategic defence and aerospace electronics solutions at competitive prices and its ability to partner with customers through the life cycle of a product, from conception till deployment will help the company leverage its operating efficiencies in the coming years," it added.