Updated on: Monday, December 13, 2021, 04:30 PM IST

Teji Mandi Explains: Data Patterns IPO in line to a rocking start

Teji Mandi Explains: Data Patterns IPO in line to a rocking start |

Teji Mandi Explains: Data Patterns IPO in line to a rocking start |


Money making opportunities are innumerable but the one through IPO is the newest. It’s become a household hobby where everyone wants to make quick money. Talking about IPOs, another IPO that is in-line is an interesting company called Data Patterns. The company is a defence and aerospace electronic solution provider. Since investors love companies that helps in the nation’s growth, it’s imperative to study what’s so special about this IPO.

Let’s read up!

What’s So Special About It?

Data Patterns is a small company that is a vertically integrated defence and aerospace electronics solutions provider. The company has developed several electronic systems for its customers with the support of its captive manufacturing facility and attention to detail. The key strength of this company is that it was founded on a two-decade history of developing high-reliability products in this domain with the broad capability to develop and manufacture any high-reliability product.

Also, the company is backed by former Blackstone head Matthew Cyriac via Florintree Capital Partners, which holds about a 12.8% stake in the company. Moreover, the company has been profitable since its order book has grown at a CAGR of 40.72% over the last four years, and as of July 2021 stood at Rs 582.30 crore.

Why Should This Interest You?

Defence is a sensitive topic these days in India. It is one space where we are seeing massive investments and opportunities. The company works closely with defence PSUs such as Hindustan Aeronautics and Bharat Electronics. To add to that, the company’s fresh issue proceeds will be used to repay loans, support working capital needs and most importantly, upgrade and expand facilities in Chennai.

If Data Patterns grows, its core businesses will also balloon, helping India build a stronger defence system. Among India’s neighbouring countries, China is the only threat because it has advanced defence technology and a massive army. To keep India safe and sound, companies like Data Patterns must have the opportunity to grow.

What’s In Store For The Future?

Data Patterns India falls in the niche category. The company’s price band (Rs 555-Rs 585 per share) is decent, according to the company’s valuations. The media reports have also highlighted that the company is commanding a strong premium of Rs 475 per share in the grey market. This highlights that the demand for this IPO is robust and a healthy listing is forecasted in the near future.

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Published on: Monday, December 13, 2021, 04:30 PM IST