Data Patterns India Limited IPO Details

Data Patterns IPO: Key Details

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Data Patterns India Limited, incorporated in 1985, is among the few vertically integrated defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry. With net profitability growth of approximately 164% between Fiscal 2020 and Fiscal 2021, they are one of the fastest-growing companies in the Defence and Aerospace Electronics sector in India.

They have design capabilities across the entire spectrum of strategic defence and aerospace electronics solutions including processors, power, radio frequencies (“RF”) and microwave, embedded software and firmware and mechanical engineering. Their core competencies include electronic hardware design and development, software design and development, firmware design and development, mechanical design and development, product prototype design and development, functional testing and validation, environment testing and verification and engineering services opportunities

Competitive Strengths

• Indigenous integrated and strategic defence and aerospace electronics solutions provider which is well positioned to benefit from the Make in India opportunity
• Innovation focussed business model
• Sound order book across product categories supplying to marquee customers in the defence and aerospace industry
• Modern certified manufacturing facility of international standards
• Consistent track record of profitable growth due to a scalable business model
• Experienced management team and skilled workforce

Company Strategy

• Continue expansion of product portfolio with complex technology-based products
• Focus on repeat large volume production orders
• Augmenting design and development capabilities and expanding manufacturing infrastructure
• Focus on increasing revenues by leveraging core competencies and grow services business
• Focus on increasing export business

Proceeds from Fresh Issue of Data Patterns IPO will be used to:

• Prepayment or repayment of all, or a portion, of certain outstanding borrowings
• Funding working capital requirements
• Upgrading and expanding existing facilities at Chennai; and
• General corporate purposes

Data Patterns IPO: Financials

Data Patterns IPO: Comparison with listed industry peers

Data Patterns IPO: Risks

• The business is largely dependent on contracts from the GoI and associated entities including defense public sector undertakings and government organizations involved in space research
• They depend on a limited number of customers such as DRDO Defence PSUs such as MoD, BrahMos
  Aerospace and the Indian government space organization for a significant portion of the revenue
• Any failure to comply with the provisions of the contracts entered with the customers, especially the GoI
  Entities could have an adverse effect on the business
• They are subject to strict quality requirements, customer inspections and audits, and any failure to comply with quality standards may lead to cancellation of existing and future orders
• They have significant working capital requirements. If they experience insufficient cash flows from operations or are unable to borrow to meet working capital requirements, it may materially and adversely
  affect the business,

For complete internal and external risk factors, you can refer to the RHP of the company.

Data Patterns IPO: Registrar and Lead Managers