Data Patterns beats GMP and lists at 40% premium

• Shares of Data Patterns listed at ₹864 while the shares were allotted at ₹585per share.
• The IPO received huge demand from investors as it was subscribed 119.62 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹4,483 crore.

Shares of Chennai-based Data Patterns, an electronic solutions provider for the defence and aerospace segment, made a good listing on the National Stock Exchange (NSE) and BSE at 47.69% premium over the issue price of ₹584 apiece.

The listing gains of Data Patterns have exceeded analysts and investor’s expectations.

“We believe Data Patterns has the potential to grow rapidly and exponentially as part of the 'Make in India' initiative. The company has experienced rapid growth in revenues and profits, with margins that are soaring. Based on the GMP currently, we can expect a 35% listing gain. Investors who got allotments should hold the stock while new investors can look for buying opportunities at any correction or consolidation,” said Aayush Agrawal, senior analyst at Swastika Investmart.

Post-listing, the market capitalisation of the company stood at ₹4,483 crore, according to BSE data.

The shares of Data Patterns were trading at ₹xx, higher by xx% at 10.01 a.m., on December 24.

The listing gains of ₹277 is a tad more than the grey market premium which indicated a premium of ₹274 per share.

The IPO was open between December 16 and December 20 ⁠and was oversubscribed 119.62 times by investors.

Incorporated in 1985, Data Patterns is an integrated defence and aerospace electronics solutions provider that caters to requirements across space, air, land and the sea.

Data Patterns is among the top two players — in terms of profitability — providing solutions to the defence sector, first being Bharat Electronics.

As on September 30, 2021, Data Patterns had an order book of 581.30 crore, with orders from several marquee customers including the Indian government defence ministry, BrahMos, Defence Research and Development Organisation, the Indian government space organisation, Hindustan Aeronautics, Bharat Electronics etc.

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