Shares of Data Patterns (India) saw a strong debut on Friday, the listing day, rallying with a premium of 46 per cent over its issue price.
The company is a defence and aerospace electronics solutions provider catering to the indigenously developed defence products industry.
Shares of the company listed at Rs 856, against the issue price of Rs 585 per share.
However, they pared some of its intra-day gains and settled at Rs 755, up over 28 per cent from its issue price, NSE data showed.
The listing of the firm comes at a time when the Centre is planning to ramp up indigenously-made defence equipment under its 'Atma Nirbhar Bharat' initiative.
"Its demanded valuations was on higher side, but has the ability to expand the business and earnings. We have given a 'Subscribe' rating for the issue. Today, the company got listed at 47 per cent premium to the offer price. We feel that there is limited upside in the share price, thus investors are recommended to book profit," said Rajnath Yadav, Research Analyst at Choice Broking.
The company's market capitalisation is currently Rs 3,894 crore, NSE data showed.
"Seeing strong fundamentals and orderbook over the years and government initiatives such as Make In India may provide a boost to the company's growth. We advise investors to hold the stock for the long term," said Mohit Nigam, Head, PMS at Hem Securities.
Besides, new investors can buy the stock around Rs 750 levels, Nigam said.
Source : IANS