Table of Contents
- Data Patterns India Limited Introduction
- What are the risk factors in Data Patterns IPO?
- What are the competitive strengths in Data Patterns IPO?
- What are the product offerings of Data Patterns IPO?
- How are the financials of Data Patterns India Limited?
- Who are the Promoters of Data Patterns India Limited?
- Objects of Data Patterns IPO net proceeds
- Data Patterns IPO open & close date
- Data Patterns IPO allotment, refund & listing date
- How to check the allotment status of Data Patterns IPO?
- Data patterns IPO GMP (Grey Market Price)?
- Data patterns IPO price band, RHP & details
- Data Patterns IPO valuation (Overpriced or Underpriced?)
- Data Patterns IPO IPO good or bad? (review)
Data Patterns India Limited Introduction
Data Patterns Limited is a defense and aerospace electronics solution in India. The company has had stable revenue growth in the last 3.5 years and also has a sound order book. Chennai based Data Patterns is coming up with an IPO on 14th Dec 2021 comprises a fresh issue of equity shares aggregating up to Rs. 240 crores and an offer for sale of 59.5 lakh shares from existing shareholders.
What are the risk factors in Data Patterns IPO?
1. Company is highly dependent on Government orders, as a huge portion comes from there
2. Data Patterns India Limited has a limited number of customers. So losing any customer may affect the company financials
3. One of the company’s promoters Srinivasagopalan Rangarajan has pledged his shares against loans or securities.
4. Company is involved in certain legal proceedings, which if materialize can have an adverse effect on the company
5. Company IPO objects contain Rs 348 Crores towards Offer for sale (OFS) where the money would go to selling shareholders and company would not get anything
What are the competitive strengths in Data Patterns IPO?
1. Well established in vertically integrated defence and aerospace electronics solutions providers
2. They are one of the fastest-growing companies in the Defence and Aerospace Electronics sector in India.
3. Company has a sound order book with marque customers like the Indian government defence ministry, BrahMos, DRDO, the Indian government space organisation, HAL, BEL and a DPSU involved in the missile space.
4. Data Patterns is an Indian company, therefore, benefitted from the Make In India Programme
5. The Company has shown good profitability
6. The margins of the company are also increasing over the past 3.5 years
What are the product offerings of Data Patterns IPO?
The below products are the company’s major product group:
(i) Radars, (ii) Underwater electronics / communications / other systems, (iii) Electronic warfare suite, (iv) BrahMos programme, (v) Avionics, (vi) small satellites, (vii) ATE for defence and aerospace systems, (viii) COTS.
How are the financials of Data Patterns India Limited?
- Data Patterns has shown growth in revenue over the past 3.5 years, also
- The company’s profits are increasing over the years
- Company has a impressing ROE and ROCE percentage
|Financial Year Ended||Revenue (₹ Crores)||PAT (₹ Crores)||EPS (₹)|
|As of September 30, 2021||96.45||23.21||4.97|
Who are the Promoters of Data Patterns India Limited?
Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan are the promoters of the company.
Objects of Data Patterns IPO net proceeds
Data Patterns IPO Size is Rs 588.2 Crores and below are the objects of the IPO:
1) Offer for Sale (OFS) Rs 348.22 Crores: However, the company will not get any proceeds from the OFS, the entire OFS will go to selling shareholders
2) Fresh issue of Rs 240 Crores: Fresh issue would be done towards the following purposes:
- Prepayment or repayment of all, or a portion, of certain outstanding borrowings availed by our Company;
- Funding working capital requirements of our Company;
- Upgrading and expanding our existing facilities at Chennai moreover for
- General corporate purposes
Data Patterns IPO open & close date
The open date is: 14th Dec 2021
The close date is: 16th Dec 2021
Data Patterns IPO allotment, refund & listing date
The allotment date is: 21st Dec 2021
The refund date is: 22nd Dec 2021
The listing date is: 24th Dec 2021
How to check the allotment status of Data Patterns IPO?
The allotment status will be updated through the link given linkintime.co.in
Data patterns IPO GMP (Grey Market Price)?
As of 21st Dec 2021, the Grey market price of Data Patterns is around Rs 240 (41.03% premium)
Data patterns IPO price band, RHP & details
|Price range||555 – 585|
|Minimum order quantity||25|
Data Patterns IPO valuation (Overpriced or Underpriced?)
Calculating with its upper price band of Rs 585
Now, the EPS (earning per share) for FY21 is 11.89 so the P.E ratio (price to earnings ratio) comes at 585/11.89=49.20x
If we consider the last 6 months ended Sep-21 EPS which is 4.97, therefore the P.E comes at 585/4.97=117.70x
Now, if we annualise it for FY-21 the P.E appears as 117.70/2= 58.85x
Therefore, the company is asking P.E ranging between 49X to 59X which is reasonably priced
However, there are listed peers like Paras Defence trading at P.E 139x and Bharat Electronics trading at P.E 23x, comparing with peers it seems IPO is well priced.
Data Patterns IPO IPO good or bad? (review)
Data Patterns Limited is among the few vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry. Moreover, Company has a unique business model and also benefitted from Make In India Mission, most importantly company has shown consistent growth in profitability and margins over the past three years. The EBITA and ROE, ROCE are also in a boost.
Looking at all these factors, in short, the company has a good track record both financially and business-wise too. So, one can definitely go for investment in Data Pattern Limited. And for listing gains as we have noticed earlier how one of its peers Paras Defence listed with a premium of 170%. So Data Patterns too can have a bumper listing ahead.
QIB Shares Offered Not more than 50% of the offer
Retail Shares Offered Not less than 35% of the offer
NII (HNI) Shares Offered Not less than 15% of the offer
Steps to apply in Medplus Health IPO through Zerodha
Visit the Zerodha website and log in to Console.
Go to Portfolio and click the IPOs link.
Go to the ‘Medplus Health IPO’ row and click the ‘Bid’ button.
Enter your UPI ID, Quantity, and Price.
‘Submit’ IPO application form.
Visit the UPI App (net banking or BHIM) to approve the mandate.
Pre Issue Share Holding 58.63% Post Issue Share Holding 45.62%
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