Data Patterns stock has surged 87% over the issue price

29 Aug 2022 , 01:39 PM

In intraday trading on Monday, shares of Data Patterns (India) rose about 15% on high volume, setting a new high of Rs1,093.50 on the BSE. The stock had increased in price for five consecutive trading days and had gained 30% during that period. It was up 13% as of 12:26 p.m., compared to the S&P BSE Sensex’s 1.3% decrease. With a combined 1.3 million equity shares changing hands on the NSE and BSE, the average trading volumes on the counter increased by more than five times.

The stock is now trading on the BSE at a premium of almost 87% over its initial issue price of Rs585 per share following a recent rapid surge. On December 24, 2021, the firm debuted on the public market.

Data Patterns is a provider of vertically integrated defense and aerospace electronics solutions to the domestically produced defense goods market. Data Patterns has orders of Rs663.55 crore as of June 30, 2022. The firm reported receiving letters of intent (LOI) for orders totaling Rs173.57 crore, concluding negotiations, and expecting LOI for orders totaling Rs168.62 crore. The order book will exceed Rs1,000 crore, according to the business, if all the projects for which discussions have ended are turned into orders.

India plans to reduce its reliance on imports and increase its own production of its defense and space needs. The Defense Research and Development Organization (DRDO) declared the indigenization of 108 systems and sub-systems, while the government outlawed the import of 101 defense equipment. According to Data Patterns’ FY22 annual report, the amount of tenders has grown, the order books of manufacturers of defense products are starting to expand, capital investment programs have been started by participants in the defense industry, and the sector’s employment base is expanding.

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