Data Patterns IPO: Bidding for public issue worth ₹588.22 crore ended on 16th December 2021 and now all eyes are set on the share allotment date, which is most likely on 21st December 2021. In 3-day subscription, the public offer got subscribed 119.62 times whereas the retail portion was subscribed 23.14 times. After strong response from investors, grey market has gone highly bullish over the public issue. According to market observers, shares of Data Patterns are available at a premium of ₹595 in grey market today.
Data Patterns IPO GMP
Market observers said that Data Patterns IPO GMP today is ₹595, which is ₹15 lower from its yesterday's grey market premium (GMP) of ₹610. They said that dip in GMP post-closure of the subscription is a normal phenomena. But, dip of ₹15 signals positive sentiments in grey market remaining intact. They said that even after the dip in Data Patterns IPO GMP, grey market is signaling bidders to expect strong listing premium from the public issue. They went on to add that Data Patterns IPO grey market price has been oscillating between ₹580 to ₹615 for last four days, which reflects strong positive bias of the grey market in regard to the public issue. However, they maintained that strong subscription of the issue has a major role in it.
What this GMP mean?
Market observers said that GMP is a short-0term sentiment in regard to the listing premium that one can expect from the IPO. As Data Patterns IPO GMP today is ₹585, it means grey market is expecting that shares of the company will list around ₹1180 ( ₹585 + ₹595), which is more than 100 per cent higher from its price band of ₹555 to ₹585 per equity share.
However, stock market experts said that grey market premium is an unofficial data and it involves those people who have stake involved in the IPO. So, one should not rely on GMP too much. They said that it is balance sheet of the company that gives clear picture about the financials of the company.
Highlighting the fundamentals that is attracting attention of Dalal Street observers; Abhay Doshi, Founder at UnlistedArena.com said, "The company enjoys highest EBITDA margins, ROE when compared with its peers. They also have a strong order book of 581 crore and consists of marquee clients of Indian Defense Eco-System. On the valuation front, the asking P/E is almost 55x (Post issue) based on FY21 earnings. Increase in government spending on defence sector and initiative of ‘Make in India’ adds value. Recent strong listings of defence sector companies are working as value addition for the public issue as well."
Echoing with Abhay Doshi's views; Ankur Saraswat, Research Analyst at Trustline Securities said, "Data Patterns has innovation focused business model and very diversified high-end technological advanced products portfolio. Its solid order book from prestigious clients, track record of profitable growth, are well-positioned to benefit from the Make in India opportunity."
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
