Data Patterns IPO subscribed 7.7 times on Day 2

NEW DELHI: The initial public offering (IPO) of Data Patterns received a solid response from the investors as the issue was subscribed nearly 8 times on the second day of the bidding process.

The issue saw applications for 5,44,91,050 shares against on offer 70,97,285 shares, resulting in total subscription of 7.7 times on the second day of the issue. The issue had sailed through within 75 minutes of bidding on Tuesday.

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 multiples 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 in 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.