NEW DELHI: Shares of defence and aerospace electronics solutions provider Data Patterns India made a stellar debut on the bourses as the stock opened with a massive 47.69% gains on Friday following strong IPO subscription.
The stock started off trade at Rs 864, against issue price of Rs 585, on the BSE, while the opening price on the National Stock Exchange was Rs 856.
However, it saw profit booking and ended its maiden session on the BSE at Rs 755, up 29% over its issue price.
The strong listing is no surprise as Data Pattern’s IPO was subscribed 120 times and almost all the brokerages gave in a ‘subscribe’ rating.
Santosh Meena, Head of Research, Swastika Investmart, said that in the long run, the stock will be a wealth generator in the next 3-5 years, while short-term investors should keep a stop loss of Rs 790 on a closing basis.
The company can grow rapidly and exponentially by taking advantage of the government’s “Make in India” initiative in the near future, added Meena.
According to ICICI Securities, Data Patterns is one of fastest growing players in the defence & electronics space with proven in-house design and development capabilities.
It also has a strong orderbook, which grew at 40% compounded annual growth rate over FY18-1HFY22. The company’s orderbook stood at Rs 581.3 crore as of September 2021.
The strong performance of Data Patterns came after a series of dismal openings for IPOs on the stock exchanges. IPOs of Rakesh Jhunjhunwala-backed Metro Brands and Star Health and Allied Insurance, RaitGain and Shriram Properties, had a forgettable debut on the exchanges.
According to the data compiled by Prime Database, 63 companies have floated initial share sale this year, raising Rs 1.19 lakh cr from investors.