IPO Data Models | Healthy finances with a strong order book, huge growth potential among Make in India opportunities boosted investor sentiment.
Data Patterns India made a remarkable debut on the stock exchanges when the stock opened with a massive gain of 47.69% on December 24 following strong IPO underwriting. Healthy financial data with a strong order book and huge growth potential among Make in India opportunities boosted investor sentiment.
Excluding trade at Rs 864, against an issue price of Rs 585, on BSE, while the opening price on the national stock exchange was Rs 856. This was the 62nd listing of the calendar year In progress. The public offering of a defense and aerospace electronics solutions provider was in high demand by investors, subscribing more than 120 times.
Demand from non-institutional investors was higher than others as they bought shares 254 times their reserved stake. The portion of qualified institutional investors was counted 191 times, while the portion reserved for retail investors was subscribed 23.14 times.
The public question raised Rs 588 data models.22 crores. The price range for the offer, which was auctioned off last week, was Rs.555,585 per share. Data Patterns, one of the few providers of aerospace electronics and vertically integrated defense solutions, targets the internal defense products industry. The company has a strong order backlog which increased 40% CAGR compared to FY18-1HFY22. Its order book stood at Rs 581.3 crore in September 2021.
The company has developed end-to-end capabilities to meet the full spectrum of aerospace and defense platforms, including processors, power, radio and microwave frequencies, embedded software and firmware, and l ‘mechanical engineering.
It experienced revenue growth at a CAGR of 31% during FY19-FY21 and profit increased at a CAGR of 169% during the same period, while the EBITDA margin increased by 19.5% during FY19 to 41.1% during FY21. Order book in the coming years, a healthy financial situation, an innovation-driven business model and great market opportunities in Indian defense and aerospace.
Read also Supriya Lifescience IPO Share Allocation, latest GMP, listing date “We like data models given its vertically integrated business model, well-diversified portfolio, strong order book and strong customer relationship as well as consistent financial data. The issue is valued at 55x FY21 P / E (on a post-issue basis), compared to 167x for MTAR and 138x for Paras Defense. We believe it could benefit from the government’s increase on defense / aerospace spending. Therefore, we recommend to subscribe, ”said Motilal Oswal.