CHENNAI: Data Patterns made a strong debut on the stock exchanges on Friday as shares of the Chennai-based defence and aerospace electronics maker opened at a 48% premium on the BSE at Rs 864.
The opening price on the National Stock Exchange was Rs 856 as against an issue price of Rs 585. The shares closed the trading day at around Rs 754.85 on the BSE. Earlier this week, the Data Patterns’ IPO was subscribed around 120 times owing to its growing order book of around Rs 580 crore, healthy financials, and the Make in India opportunity appealing to investors’ sentiment.
Non-institutional investors’ demand was the maximum as they bought shares 254 times their reserved portion. Qualified institutional investors portion was subscribed 191 times, and retail investors subscribed 23.14 times. Founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, Data Patterns caters to end-to-end needs of the defence and aerospace sectors making products such as processors, microwave, embedded software, radars, electronic warfare systems, avionics and other electronic components.
The company is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners LLP, which holds a 12.8% stake in the company pre-offer. The issue received the thumbs up from most brokerages who gave it a subscribe rating.
“Higher margins more than compensates for the lengthy working capital cycle resulting in satisfactory cash flow based ROCE. We recommend investors to subscribe to the issue for listing gains as well as from a long term perspective,” analysts at Nirmal Bang Securities said.
The opening price on the National Stock Exchange was Rs 856 as against an issue price of Rs 585. The shares closed the trading day at around Rs 754.85 on the BSE. Earlier this week, the Data Patterns’ IPO was subscribed around 120 times owing to its growing order book of around Rs 580 crore, healthy financials, and the Make in India opportunity appealing to investors’ sentiment.
Non-institutional investors’ demand was the maximum as they bought shares 254 times their reserved portion. Qualified institutional investors portion was subscribed 191 times, and retail investors subscribed 23.14 times. Founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, Data Patterns caters to end-to-end needs of the defence and aerospace sectors making products such as processors, microwave, embedded software, radars, electronic warfare systems, avionics and other electronic components.
The company is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners LLP, which holds a 12.8% stake in the company pre-offer. The issue received the thumbs up from most brokerages who gave it a subscribe rating.
“Higher margins more than compensates for the lengthy working capital cycle resulting in satisfactory cash flow based ROCE. We recommend investors to subscribe to the issue for listing gains as well as from a long term perspective,” analysts at Nirmal Bang Securities said.
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