The company, which filed its draft red herring prospectus (DRHP) with market regulator SEBI in September, is expecting to raise Rs 600-700 crore
Ahead of its IPO, Data Patterns (India) Ltd, a supplier of electronic systems to the defence and aerospace sector, has raised a pre-IPO round led by Axis Mutual Fund, White Oak Capital and IIFL Mutual Fund, as per a report by Livemint.
As per the report, the company, which filed its draft red herring prospectus (DRHP) with market regulator SEBI in September, has raised around Rs 60 crore in the pre-IPO round at a valuation of ₹2,700 crore.
“The company will soon file its red herring prospectus with the registrar of companies, most likely by the end of this week and will look to launch its IPO by mid-December. The IPO pricing could be similar to the pre-IPO placement or at a slight premium, though it is yet to be finalized,” said one of the publication’s sources.
As per market sources, the Chennai-based company is expecting to raise Rs 600-700 crore. The public issue comprises a fresh issue of Rs 300 crore and an offer for sale of 60,70,675 equity shares by promoter and individual selling shareholders.
The OFS includes sale of up to 1.97 million shares each by Srinivasagopalan Rangarajan and Rekha Murthy Rangarajan, up to 75000 by Sudhir Nathan, up to 414775 equity shares by G.K. Vasundhara and upto 1.65 million by other existing shareholders.
The company intends to use the capital raised from the initial share sale towards the repayment of debt, as working capital, and to upgrade and expand its existing facilities. Besides , the funds will also be used for the company’s general corporate purposes.
Recent IPOs in the defence space, such as MTAR Technologies in March and Paras Defence and Space Technologies in September, saw massive subscription numbers and went on to deliver strong listing-day gains to investors. Both the stocks are trading 3.5-4 times above their IPO price.
Data Patterns is a homegrown defence and aerospace electronics systems company that develops systems for land, sea, air and space platforms.
For FY21, the company’s revenue from operations was at Rs 226.55 crore against Rs 160.19 crore a year ago. Net profit for the period stood at Rs 55.57 crore versus Rs 21.05 crore last year.