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Chennai-based Data Patterns (India) Limited, a vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry, has garnered Rs 176 crore from anchor investors ahead of its initial share sale that opens for public subscription on Tuesday. The company informed the bourses that it has allocated 3,016,533 shares at Rs. 585 per share on Monday, December, 13th, 2021 to the anchor investors.

The anchor book has seen a strong participation from domestic mutual funds (HDFC MF, ICICI Pru MF, Axis MF, Kotak MF, Birla MF, Nippon MF, FT MF, Tata MF, PGIM MF and IIFL MF), life insurance companies (HDFC Life and Tata AIA Life) and other institutional investors (Nomura Funds, White Oak Capital and Enam)

Axis Mutual Fund and White Oak Capital picked up the largest allocation of 11.4% each for approximately Rs 20 crs, across their various schemes. Axis MF and White Oak Capital had also invested Rs 35 crs and Rs 10 crs respectively in a Pre-IPO placement concluded last month by the company. The other investor in the Pre-IPO round was IIFL with Rs 15 crs investment – IIFL MF has been allocated 6.8% of the anchor book amounting to Rs 12 crs.

Nomura Funds, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sunlife Mutual Fund, Kotak Mahindra Mutual Fund, Nippon Life India Mutual Fund and PGIM India Mutual Fund – each of these institutions were allocated 205,650 shares for approximately Rs 12 crs each across their various schemes. Other institutions viz. Tata Mutual Fund, Franklin Templeton Mutual Fund, HDFC Life, Tata AIA Life and Enam has been allotted 170,950 shares for approximately Rs 8 crs each

Data Patterns core competencies include design and development across electronic hardware, software, firmware, mechanical, product prototype besides its testing, validation and verification. Its involvement has been across Radars, Underwater Electronics/Communication and Other Systems, Electronic Warfare Suites, Avionics, Small Satellites, Automated Test Equipment, COTS and programmes catering to Tejas Light Combat Aircraft, Light Utility Helicopter, BrahMos and other Communication and Electronic Intelligence Systems.

The company 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 Sep 2021 stood at Rs 581.3 crore.

For FY21, the company's revenue from operations was at Rs 226.55 crore against Rs 160.19 crore in the preceding fiscal year. Its net profit for the period stood at Rs 55.57 crore as compared to Rs 21.05 crore in 2019-20.

JM Financial Ltd and IIFL Securities Ltd are the book running lead managers to the issue.

IPO Details

The public issue comprises a fresh issue of Rs 240 crore and an offer for sale of 59,52,550 equity shares by promoter and individual selling shareholders. The company had recently concluded a pre-IPO placement of 10,39,861 equity shares aggregating to Rs 60 crore. The company intends to utilise net proceeds from the fresh issue (including Pre-IPO) to the extent of Rs 60.80 crore for prepayment / repayment of outstanding borrowings, Rs 95.19 crore for funding its working capital, Rs 59.84 crore to upgrading and expansion of its existing facilities and general corporate purposes.

The OFS includes sale of up to 19,67,013 equity shares by Srnivasagopalan Rangarajan, up to 19,67,012 equity shares by Rekha Murthy Rangarajan, up to 75,000 equity shares by Sudhir Nathan, up to 4,14,775 equity shares by G.K. Vasundhara and up to 15,28,750 equity shares by existing shareholders.

The issue will open on Tuesday, December 14, 2021 and closes on Thursday, December 16, 2021. The price band for the Offer has been determined at Rs 555 – Rs 585 per equity share. Investors can bid for a minimum of 25 equity shares and in multiples of 25 equity shares thereafter. The IPO will fetch Rs 588 crore at the upper end of the price band.

The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations.

The Offer is being made through the Book Building Process, in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.

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