NEW DELHI: The initial public offering (IPO) of Data Patterns (India), a defence and aerospace electronics solutions provider, will hit the primary market on December 14, Tuesday. Chennai-based Data Patterns caters to the indigenously developed defence products industry and will sell its shares in the price band of Rs 555-585.

The issue consists of issuance 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 shares.
Data Patterns designs strategic defence and aerospace electronics solutions including processors, power, radio frequencies and microwave, embedded software and firmware and mechanical engineering.
The company has trimmed the size of fresh issue from Rs 300 crore to Rs 240 crore as it raised Rs 60 crore from a pre-IPO placement of over 1 million shares at an average selling price of Rs 577 a share.

The net proceeds from the fresh issue will be utilized towards repayment of loans, working capital requirements, upgrading and expanding facilities at Chennai, and general corporate purposes.
Investors can bid for a minimum of 25 equity shares and in multiple of 25 thereof. The issue can be subscribed till December 16, Thursday. The company is eyeing to raise Rs 588.22 crore crore via primary route.

The company reported a net profit of Rs 55.57 crore in the financial year ended on March 31, 2021, which was Rs 21.04 crore previous fiscal. The revenue from operations climbed to Rs 223.9 crore from Rs 156 crore during the period.
For the period ended on September 30, 2021, it reported a net profit of Rs 23.2 crore against a net loss of Rs 6.38 crore in the same period previous fiscal. Revenue during the period more than doubled to Rs 96.44 crore from Rs 44.47 crore.

50 per cent of the net issue is reserved for qualified institutional buyers (QIBs), whereas non-institutional buyers will have 15 per cent shares allocated for them. Retail portion has been fixed at 35 per cent of the offer.
JM Financial and IIFL Securities have been appointed to manage the issue. Link Intime India have been appointed as the registrar to the issue.

The company’s revenue fell Rs 250.7 crore in FY2021 from Rs 398.7 crore in FY2020 due to the impact of Covid-19 on the travel sector. Its net loss more than doubled to Rs 27.8 crore in FY21, from Rs 12.8 crore previous year.