Data Patterns (India), a defence and aerospace electronics solutions provider, is set to launch its initial public offering (IPO) on December 14. The price band and lot size will be announced on December 9.
The offer, which will close on December 16, is the ninth public offer to open this month. The IPO comprises a fresh issue of shares worth Rs 240 crore and an offer for sale of 5.95 million shares by the promoters.
The company said the size of the fresh issue was reduced to Rs 240 crore from Rs 300 crore after Rs 60 crore was raised from a pre-IPO placement of over 1 million shares at an average selling price of Rs 577 a share.
Promoters Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan will offload 1.97 million shares each. Sudhir Nathan, GK Vasundhara and other shareholders will sell more than 2 million shares.
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The offer for sale money will go to the selling shareholders, while the net proceeds from the fresh issue will be used for repaying loans, working capital requirements, upgrading and expanding facilities at Chennai, and general corporate purposes.
Data Patterns caters to the indigenously developed defence products industry. It designs strategic defence and aerospace electronics solutions including processors, power, radio frequencies and microwave, embedded software and firmware and mechanical engineering.
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The company claimed that in fiscal 2021, it recorded the highest earnings before interest, tax, depreciation and amortisation, return on capital employed and return on equity among key Indian defence and aerospace companies.
Profit rose to Rs 55.57 crore in FY21 from Rs 21.04 crore in the previous year. Revenue from operations climbed to Rs 223.9 crore from Rs 156 crore.
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In the six-month period ended September, the company posted a profit of Rs 23.2 crore against a loss of Rs 6.38 crore in the corresponding period a year earlier. Revenue in the same period more than doubled to Rs 96.44 crore from Rs 44.47 crore.
The company will finalise the share allotment by December 21. Unsuccessful investors will get refunds in their bank accounts by December 22 and shares will be credited to the demat accounts of eligible investors by December 23.
The company will make its debut on the BSE and National Stock Exchange on December 24.
JM Financial and IIFL Securities are the book-running lead managers to the issue, while Link Intime India is the registrar to the offer.