DCX Systems Limited IPO – company Overview
DCX Systems IPO subscription date is October 31 to November 1, 2022. The company filed DRHP document with market regulator SEBI on April 4, 2022 for approval. DCX systems also received ‘in-principle’ approvals from BSE and NSE for the listing of the Equity Shares in both the exchanges.
DCX Systems Limited was incorporated as “DCX Cable Assemblies Private Limited” on December 16, 2011, at Bengaluru, Karnataka. The company is one of the leading companies in India in the aerospace and defense industry that manufacturers electronic sub-systems, cable & wire harness assemblies, and kitting.
Dr. H.S. Raghavendra Rao is the founder Chairman and Managing Director of DCX Systems Limited since January 16, 2012. Neal Jeremy Castleman is the founder and director of the company. Neal Jeremy Castleman is the founder and director of the company. He is Non-Independent and Non-executive Director.
Read the complete company insights here – “DCX Systems Limited Company Profile – Key products, finance, management team, strategic insights”
DCX Systems Limited Financial analysis
The company’s revenue from operations has grown at a CAGR of 46.22% between Fiscal 2019 and Fiscal 2021. DCX Systems has a strong order book to be executed by FY 2024. The order book has increased from INR 10,423.01 million in FY 2019 to INR 28,550.18 million in FY 2021. As of February 28, 2022, the company’s order book was INR 24,992.98 million to be executed in FY 2023 and FY 2024.
Read financial details of the company in report – “DCX Systems Limited Company Profile – Key products, finance, management team, strategic insights”
DCX Systems IPO pricing and issue size
DCX Systems Limited has filed its Draft Red Herring Prospectus (DRHP) to raise INR 600 crore through an initial public offering (IPO). The fresh issue of equity shares worth up to INR 500 crores and offer for sale is of equity shares aggregating up to INR 100 crores. The promoter of DCX Systems Limited NCBG HOLDINGS INC. and VNG TECHNOLOGY PRIVATE LIMITED are selling INR 50 crores each as an offer for sale.
Book Running Lead Managers and registrar of this IPO are
- Edelweiss Financial Services Limited
- Axis Capital Limited
- Saffron Capital Advisors Private Limited
- The registrar for this IPO is Link Intime India Private Limited.
DCX Systems Limited’s equity shares outstanding before the initial public offer stand at 77,400,000 shares. The face value of the Equity Shares is ₹ 2.00 per Equity Share.
Share Reservations among QIBS (Qualified Institutional Buyers), NIBS (Non-Institutional Bidders) AND RIBS (Retail Individual Bidders)
- At least 75% of the Offer (of which up to 60% of the QIB Portion shall be available for allocation to Anchor Investors, out of which one-third shall be reserved for domestic Mutual Funds)
- Not more than 15% of the Offer will be allocated to NIBs
- Not more than 10% of the Offer will be allocated to RIBs
Utilization of Net Proceeds from DCX Systems Limited IPO
DCX Systems Limited will utilize the net proceed as below.
- Repayment/ prepayment, in full or part, of certain borrowings
- Funding working capital requirements
- Investment in the wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses
- General corporate purposes
DCX Systems Limited will not receive any amount out of the offer for sale. The company is planning to repay INR 120 crores in FY 2023 from the net proceeds of fresh issue. The company will spend INR 200 crores to meet its capital expenditure. DCX Systems Limited will invest INR 45 Crores in its subsidiary and the rest of the net proceeds will be utilized to meet the general corporate purposes.
DCX Systems IPO: Do you invest?
- DCX Systems Limited is focusing on reducing debt.
- A major portion of the net proceeds is to meet its debt and working capital.
- The company has a strong order book till 2024.
- The company has strong execution capabilities as well.
- Government of India is focusing on Make in India in defense sector.
- The valuation is reasonable.
- DCX Systems Limited developed long-term and entrenched relationships with OEM customers.
- However, the company does not have any plan for inorganic growth through this IPO.
- A major portion of the revenue is coming from the top three customers.
Overall all these factors will benefit the investors of this company in the long term. Detailed company in report – “DCX Systems Limited Company Profile“
I would invest in the company looking at the expansion plan of the company as well as the focus of government of India on make in India for defense sector.
DCX Systems Limited IPO Details
| DCX Systems IPO Parameters | IPO details |
|---|---|
| Authorized Share Capital Equity shares | 125,000,000 Equity Shares |
| Aggregate value at face value (INR 2) | INR 250,000,000 |
| Subscription Dates | 31-10-2022 to 02-11-2022 |
| BID/OFFER Opens on | 31-10-2022 |
| BID/OFFER closes On | 02-11-2022 |
| Price Band | ₹197 to ₹207 per share |
| Offer for sale | INR 100 crores |
| Fresh Issue of Shares | INR 500 crores |
| Equity Shares outstanding before the Issue | 77,400,000 Equity Shares |
| Minimum bid (lot size) | 72 Shares |
| Maximum bid (lot size) | 936 Share |
| Retail Investors (Min investment) | INR 14,904 |
| Retail Investors (Max investment) | INR 193,752 |
| Face Value | INR 2 per share |
| Listing On | BSE & NSE |
DCX Systems IPO GMP (Grey Market Price)
| Date | DCX Systems IPO GMP | DCX Systems IPO Price |
| 29-10-2022 | INR 80 | INR 207 |
| 28-10-2022 | INR 80 | |
| 27-10-2022 | INR 60 | |
| 26-10-2022 | INR 50 | |
| 25-20-2022 | INR 50 |
What do Brokerages say about DCX Systems Limited IPO?
Overall analysts are positive about the DCX Systems IPO subscription.
| Broking houses/ Analyst | View on DCX Systems IPO |
| Angel One | Subscribe |
| Arihant Capital | Subscribe for long term |
| BP Wealth | Subscribe for listing gain |
| Choice Broking | Subscribe |
| Elite Wealth | Subscribe |
| Hem Securities | Subscribe |
| GEPL Capital | Subscribe |
| Religare Broking | |
| Nirmal Bang | Subscribe |
| Ventura Securities | Subscribe |
| Anil Singhvi (Zee Business) | Subscribe |