Mumbai Initial Public Offering (IPO)-bound defense and aerospace component maker Data Patterns (India) Ltd. has raised a pre-IPO round led by Axis Mutual Fund, White Oak Capital and IIFL Mutual Fund, two people aware of the growth. he said. Oblivion.
The company has picked up around 60 crores in the round on the valuation of 2,700 crore, said one of the people mentioned above.
“The company will soon file its red herring prospectus with the registrar of companies, is likely to launch its IPO by the end of this week and by mid-December. The IPO may be priced at the same or a marginal premium to the pre-IPO placements. Although it has not been finalized yet.”
India’s defense sector companies have seen strong demand from investors, who are betting on Prime Minister Narendra Modi’s mega push to scale up domestic manufacturing under the Atmanirbhar Bharat and Make in India programmes.
The government has announced several production-linked incentive schemes in sectors such as defence, auto components, pharma and electronic components to boost India’s image as a global manufacturing destination.
Recent IPOs in the defense sector, such as MTAR Technologies in March and Paras Defense and Space Technologies in September, saw massive subscription numbers and gave investors strong listing-day gains. Both the shares are trading at 3.5-4 times their IPO price.
The data pattern is backed by Matthew Cyriac, former co-head of Blackstone India Private Equity, who is also an investor in MTAR Technologies. Syriac’s investment in Data Patterns followed the successful IPO of MTAR Technologies. His investment firm Florintree holds a 12.8% stake in the company.
Chennai-based Data Patterns is a domestic defense and aerospace electronics systems company that develops systems for land, sea, air and space platforms. The company was established in 1985 by S. Rangarajan did it. His wife Rekha Rangarajan is a co-promoter. Data Patterns has a workforce of over 700.
“India’s defense exceeds capital expenditure” 1 trillion and has been growing at a steady pace over the years. Government policies such as the Defense Offset Programme, the Make in India initiative, and policy changes in the Defense Procurement Procedure (DPP) have resulted in increased private sector participation in the defense supply chain, which is oriented towards procurement from Indian. Indian strategic partners for industry, indigenous development and building large systems and platforms in India,” said the second person mentioned above.
Data Patterns had filed its draft paper in September 600 crore- 700 crores. Public issue involves a new fundraising of 300 crore and offer for sale of more than 6 million shares by promoters and certain individual shareholders.
The company intends to use the capital raised from the initial share sale to pay off debt, as working capital, and to upgrade and expand its existing facilities. In addition, the funds will also be used for general corporate purposes of the company.
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