The shares of Data Patterns, the provider of defence and aerospace electronics solutions, gave up the listing gains to close over 12 percent lower Friday. The shares, which had listed with a decent 48 percent premium in the secondary market Friday, closed at Rs 754. The shares were still up nearly 30 percent from the issue price of Rs 585.

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The stock opened at Rs 864 on the Bombay Stock Exchange (BSE) and Rs 856 on the National Stock Exchange (NSE) at 10 am Friday. This is over 48 and 46 percent, respectively, higher than the issue price.

Hours before the debut the shares were trading at a premium of 45 percent on the grey market, per data from IPO Watch.

The Rs 588 crore IPO of Data Patterns had launched the IPO with the price band of Rs 555-585. The issue that was open for subscription between December 13-15 had seen a robust response from the investors and was subscribed about 120 times on the final day of the bidding. It had received bids for 85 crore equity shares against the 71 lakh equity shares offered.

Retail investors had subscribed over 24 times on the final day and the non-institutional investors had booked 40 times, per data from exchanges. The qualified institutional buyers subscribed to the issue some 190 times.

Incorporated in 1998, Data Patterns is a vertically integrated defence and aerospace electronic solutions provider. IT has design capabilities across the entire spectrum of strategic defence and aerospace electronic solutions. The company aims to utilise these funds to fund working capital requirements, upgrade/expand facilities, and repay borrowings. It works closely with defence companies like Hindustan Aeronautics, Bharat Electronics, and DRDO.

Given its indigenous, integrated approach, innovation-focused business models, and experienced management team, the brokerages had recommended subscribing to the issue.

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(Edited by : Yashi Gupta)

First Published:Dec 24, 2021 10:03 AM IST