|IPO-Note||Data Patterns (India) Limited|
|Rs 555 – Rs 585 per Equity share||Recommendation: Subscribe|
Data Patterns ( India) Ltd. IPO Company Profile: –
Data Patterns (INDIA) Limited design and develop entire spectrum of strategic defence and aerospace electronics solutions including processors, power, radio frequencies (“RF”) and microwave, embedded software and firmware and mechanical engineering. Their systems have applications on various platforms and programmes such as the Tejas Light Combat Aircraft (“LCA”), the Light Utility Helicopter (“LUH”), BrahMos missile programme, precision approach radars and various communications intelligence (“COMINT”) and electronic intelligence (“ELINT”) systems. With the Net profitability growth of 164% between FY18-21, it has the fastest growth rate in revenues, EBITDA, ROCE and ROE amongst companies in the Defence and Aerospace Electronics sector.
Data Patterns ( India) Ltd. IPO Details-
|Objects of the issue||· Prepayment or repayment of all, or a portion, of certain outstanding borrowings availed by Company
· Funding working capital requirements of Company
· Upgrading and expanding existing facilities at Chennai
· General corporate purposes
|Issue Size||Total issue Size -Rs. 588.22 Cr.
Offer for Sale – Rs. 348.22 Cr.
Fresh Issue – Rs. 240 Cr.
|Face value||Rs.2.00 Per Equity Share|
|Issue Price||Rs. 555 – Rs. 585|
|Bid Lot||25 shares|
|Listing at||BSE, NSE|
|Issue Opens:||14th Dec, 2021 – 16th Dec, 2021|
|QIB||50% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
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Data Patterns ( India) Ltd. IPO Strengths :
- Provider of Indigenous integrated and strategic defence and aerospace electronics solutions
- In-house development and manufacturing capabilities
- Orders Book include order from several marquee customers including the Indian government defence ministry, BrahMos, DRDO, the Indian government space organisation, HAL, BEL.
- Consistent track record of profitable growth due to a scalable business model
Data Patterns ( India) Ltd. IPO Key Highlights:
- Revenue from operations has grown at a CAGR of 30.7% from FY19-21 with 24% growth registered in H1FY22 over H1FY21
- EBITDA Margin improved from 29.5% in FY20 to 41.75% in FY21 on better product mix.
- Revenue from sales of Products was 90.65% of the revenue while from from services was 9.35%
- Order book of the company stands at Rs. 581.3 Crore as on September 31, 2021, grew at a CAGR of 40.72% between FY18-21.
- Product Radar constitutes 62.4% of the total order book
Check Data Patterns ( India) Ltd. IPO Allotment Status
Go Data Patterns ( India) Ltd. IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-
Data Patterns ( India) Ltd. IPO Risk Factors:
- Depend on a limited number of customers such as Electronics Corporation Of India Ltd which accounted 61.58% to the total revenue in H1FY22.
- Srinivasagopalan Rangarajan the selling Promoter holding 26.4% stake in the company have pledge 09% of his holding post OFS
- Procured raw material constituting 75.46% of total purchases from Foreign Suppliers in H1FY22 which exposed to forex risk and high cost of acquisition.
- Most of the contracts are fixed-price contracts and require liquidated damages for late delivery.
Data Patterns ( India) Ltd. IPO Financial Performance:
Data Patterns ( India) Ltd. IPO Positive outlook of the Firm:
Indigenous integrated and strategic defence and aerospace electronics solutions provider
In-house development and manufacturing capabilities lead by innovation and design and development efforts.
Orders Book include order from several marquee customers including the Indian government defence ministry, BrahMos, DRDO, the Indian government space organisation, HAL, BEL.
Consistent track record of profitable growth due to a scalable business model
Data Patterns ( India) Ltd. IPO Objective of the Issue:
Prepayment or repayment of all, or a portion, of certain outstanding borrowings availed by Company
Funding working capital requirements of Company
Upgrading and expanding existing facilities at Chennai
General corporate purposes
Data Patterns ( India) Ltd. IPO Promoters of the company:
- Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan are the promoter of the company.
Data Patterns ( India) Ltd. IPO Shareholding Pattern:
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoter Group||58.63%||45.62%|
Data Patterns ( India) Ltd. IPO Financials:
|Particulars (in Rs. Cr.)||As at/ for the year ended March 31, 2021||As at/ for the year ended March 31, 2020||As at/ for the year ended March 31, 2019|
|Net cash inflow/ (outflows)||7.30||1.20||-1.82|
Data Patterns ( India) Ltd. IPO Outlook:
Data Patterns design entire spectrum of strategic defence and aerospace electronics solutions. It is amongst the highest growing companies in terms of revenues amongst key Indian defence and aerospace companies in FY19-21. The Indian defence industry is rapidly evolving into a self-sustaining and moving towards specialising into defence primes, integrators and component suppliers. Defence Electronics market was approximately $ 1.88 billion in 2021 and is expected to grow to approximately $ 6.99 billion in 2030 with a CAGR of 15.71%.Order book of the company is higher than 2x of FY21 revenue which gives strong revenue visibility. At the higher price band of Rs 585, the offer is made at P/E multiple of 41.6x of TTM Post issue EPS, which is in line with the industry average. Considering the future growth Prospects, we recommend Subscribe to the IPO.
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