- DCX Systems IPO’s price band has been fixed at ₹197 to ₹207 per share
The three-day initial public offering (IPO) of DCX Systems, manufacturer of cables and wire harness assemblies, will open for public subscription next week on Monday, October 31, 2022 and and conclude on Wednesday, November 2, 2022. The company has fixed a price band of ₹197 to ₹207 per share for its initial share sale. Investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter.
The company has cut the size of its fresh issue of equity shares to ₹400 crore from ₹500 crore planned earlier, reported news agency PTI. Apart from the fresh issue, the IPO comprises an offer for sale (OFS) of equity shares to the tune of up to ₹100 crore by promoters, NCBG Holdings Inc and VNG Technology.
As per market observers, DCX Systems shares are commanding a premium (GMP) of ₹81 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Friday, November 11, 2022. The finalisation of the share allotment of the issue is expected to take place on Monday, November 7, 2022.
“The company has delivered consistent financial performance. Their revenue from operations grew at a 56.64% CAGR between FY20-22. The company has a strong order book of Rs. 2563 crs as on June, 2022. At the upper band, the issue is priced at PE multiple of around 30x (Post fresh issue) based on FY22 metrics, which looks reasonable. Defense stocks have remained in flavour recently due to government initiatives to push indigenous manufacturing and exports of defense equipments,” said Abhay Doshi, co-founder at UnlistedArena.
The company proposes to utilise the net proceeds from the fresh issue towards repayment/prepayment of certain borrowings availed of by the company, funding working capital requirements, investment in its wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses, and general corporate purposes.
DCX Systems Ltd, the Bengaluru-based company, is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies, and are also involved in kitting.
The company had filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI in April this year to raise funds through the IPO.
Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the issue. Link Intime India Private Ltd is the registrar of the share sale.
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