Data Patterns IPO - Subscription Day 2

5paisa Research Team 5paisa Research Team 15th December 2021 - 06:33 pm

The Rs.588.22 crore IPO of Data Patterns (India), consisting of a fresh issue of Rs.240 crore and an offer for sale (OFS) of Rs.348.22 crore, saw strong response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the end of Day-2, Data Patterns (India) IPO was subscribed 7.68 times overall, with demand coming mainly from the retail segment followed by the HNI segment. The issue will close for subscription on Thursday, 16th December.

As of close of 15th December, out of the 70.97 lakh shares on offer in the IPO, Data Patterns (India) saw bids for 544.91 lakh shares. This implies an overall subscription of 7.68 times. The granular break-up of subscriptions was dominated by the retail investors followed by the QIB response on the first day.

Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum. First day response may not be too relevant for Data Patterns (India).

Data Patterns (India) IPO Subscription Day 2

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.92 Times
Non Institutional Investors (NII)	5.20 Times
Retail Individuals	12.42 Times
Employees	N.A.
Overall	7.68 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 13th December, Data Patterns (India) did an anchor placement of 30,16,533 shares at the upper end of the price band of Rs.585 to 23 anchor investors raising Rs.176.47 crore, representing 30% of the overall issue size.

The list of QIB anchors included a number of marquee domestic investor names like Axis Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Mutual Fund, Nippon India MF, Kotak Mutual Fund, IIFL Fund and Tata Mutual Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 19.59 lakh shares of which it has got bids for 18.05 lakh shares at the close of Day-2, implying 0.92X or 92% subscription for QIBs at the end of Day-2. However, QIB bids typically get bunched on the last day but the strong institutional response in the anchor placement from domestic funds shows that there is institutional appetite for the IPO.

HNI / NII Portion

The HNI portion got subscribed 5.20 times (getting applications for 80.15 lakh shares against the quota of 15.42 lakh shares). This is good progress for Day-2 because this segment normally sees the maximum response bunched on the last day of the issue. Bulk of the funded applications and corporate applications, come in on the last day of the IPO only.

Retail Individuals

The retail portion was subscribed a relatively robust 12.42 times at the close of Day-2, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is 35% in this IPO.

For retail investors; out of the 35.97 lakh shares on offer, valid bids were received for 446.71 lakh shares, which included bids for 337.63 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.555-Rs.585) and will close for subscription on 16th December 2021.

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