Data Patterns (India) Ltd, which supplies electronic systems to the defence and aerospace sector, on Monday said it has collected Rs 176 crore from anchor investors ahead of its IPO rollout on Tuesday. The company has allotted 30.16 lakh equity shares to anchor investors at Rs 585 apiece, aggregating the transaction size to Rs 176.46 crore, according to a circular uploaded on the BSE website.
The anchor book has seen participation from domestic mutual funds including HDFC Mutual Fund (MF), ICICI Prudential MF, Axis MF, Kotak MF, Aditya Birla Sun Life MF and Tata MF. In addition, life insurance companies — HDFC Life Insurance Company, Tata AIA Life Insurance Co Ltd — and other institutional investors Nomura Funds, White Oak Capital and Enam have also been allocated shares in the anchor book.
The public issue comprises a fresh issue of shares worth Rs 240 crore and an offer-for-sale (OFS) of 59.52 lakh equity shares by promoters and individual selling shareholders. The OFS includes the sale of up to 19.67 lakh shares each by Srnivasagopalan Rangarajan and Rekha Murthy Rangarajan, up to 75,000 by Sudhir Nathan, up to 4.15 lakh equity shares by G K Vasundhara and up to 15.28 lakh equity shares by other existing shareholders.
The issue, with a price band of Rs 555-585 a share, will be open for public subscription during December 14-16. The initial public offering (IPO) is expected to fetch Rs 588.22 crore at the upper end of the price band. The company intends to utilise the net proceeds from the fresh issue for repayment of debt, funding its working capital and upgradation and expansion of its existing facilities besides general corporate purposes.
Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors. Investors can bid for a minimum of 25 equity shares. Data Patterns is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners LLP, which holds a 12.8 per cent stake in the company.
Founded by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, Data Patterns is a vertically integrated defence and aerospace electronics solutions provider that caters to requirements across space, air, land and the sea. Its core competencies include design and development across electronic hardware, software, firmware, mechanical, product prototype besides its testing, validation and verification.
Its involvement has been found across radars, underwater electronics/ communication, electronic warfare suites, avionics, small satellites, automated test equipment, and programmes catering to Tejas light combat aircraft, light utility helicopter, BrahMos and other communication and electronic intelligence systems. It had developed the first nanosatellite “NiUSAT” which thereafter deployed in 2017. In addition, two more satellites are in progress, the draft papers noted.
Data Patterns works closely with the defence PSUs such as Hindustan Aeronautics Ltd and Bharat Electronics Ltd as well as government organisations involved in defence and space research like DRDO. The company’s order book has grown at a CAGR (compound annual growth rate) of 40.72 per cent over the last four years and as of July 2021 stood at Rs 582.30 crore.
For 2020-21, the company’s revenue from operations was at Rs 226.55 crore against Rs 160.19 crore in the preceding fiscal. Its net profit for the period stood at Rs 55.57 crore as compared to Rs 21.05 crore last financial year. IIFL Securities and JM Financial are the books running lead managers to the issue.
