DCX Systems Limited IPO Details

 

DCX IPO

 

DCX Systems Limited IPO (DCX Systems IPO) Detail

Offer period

Oct 31, 2022, to Nov 2, 2022,

Price Band

₹197 to ₹207 per share

Lot Size

72 Shares

Issue Size

₹500 crores

Allotment Date

Nov 07, 2022

Listing Date

Nov 11, 2022

 

DCX Systems - Company Overview

DCX Systems Limited is a leading Indian manufacturer of electronic subsystems and cable harnesses. Since its inception in 2011, the company has been a preferred Indian Offset Partner ("IOP") for foreign original equipment manufacturers ("OEMs") in the execution of aerospace and defense manufacturing projects.

The company has a new manufacturing facility at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka, in 2020.

 

DCX Systems - Geographical Presence

It serves 26 clients in Israel, the United States, Korea, and India, including Fortune 500 corporations, multinational corporations, and start-ups. Elta Systems Limited, Israel Aerospace Industries Limited - System Missiles and Space Division, Bharat Electronics Limited, Astra Rafael Comsys Private Limited, Alpha-Elsec 155 156 Defense and Aerospace Systems Private Limited, Alpha Design Technologies Private Limited, Astra Microwave Products Limited, Kalyani Rafael Advanced Systems Private Limited, SFO Technologies Private Limited are among the company's key customers.

 

DCX Systems - IPO Synopsis

DCX Systems' IPO worth ₹500 crores begins on October 31st and ends on November 2nd. The public offering consists of a fresh issue of equity shares worth up to ₹400 crores and an offer for sale of equity shares worth up to ₹100 crores by the promoters, NCBG Holdings Inc and VNG Technology. The lot size is 72 shares per lot, with a price range of ₹197 to ₹207 per share. The shares will be distributed on November 7th, with the listing date set for November 11th.

The issue's book-running lead managers are Edelweiss Financial Services, Axis Capital, and Saffron Capital Advisors.

 

DCX Systems - Objectives of the IPO

The company intends to use the net proceeds of the Fresh Issue to fund the following projects:

  1. Full or partial repayment/prepayment of certain borrowings obtained by the Company.

  2. Funding the Company's working capital requirements.

  3. Investment in Raneal Advanced Systems Private Limited, the wholly owned subsidiary, to fund capital expenditure expenses.

  4. General corporate objectives

 

DCX Systems - Financial Summary (in crores)

Period Ended

Total Assets

Total Revenue

Profit After Tax

Total Borrowing

31-Mar-20

698.85

465.23

9.74

133.98

31-Mar-21

793.18

683.24

29.56

136.38

30-Jun-21

763.41

128.69

3.34

112.62

 

DCX Systems IPO - Pros
  1. The preferred Indian Offset Partners with global accreditations for the defense and aerospace industries

  2. End-to-end capabilities that are technologically enabled and scalable

  3. The business model with cash flow visibility and the ability to mitigate operational and technological risk

  4. Strategically located in an aerospace Special Economic Zone with a cutting-edge manufacturing facility

  5. Well-positioned to benefit from industry tailwinds

 

DCX Systems IPO - Cons
  1. Business highly relies on the sale of products and services to the primary customers.

  2. Any changes in offset defence policy, as well as a reduction or reprioritization of funding in the Indian defence budget or delays in the budget process.

  3. Significant raw material shortages, delays, or disruptions in supply, could have an impact on estimated costs, expenditures, and timelines.

  4. Any negative changes in the conditions affecting the electronic subsystems market can have a negative impact on business.

  5. Unable to obtain from customers the furnished equipment required for testing and qualifying the products, which may have a material adverse effect.

 
How to Apply for DCX Systems Limited IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your client ID

  3. Enter the OTP received in your registered mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity, and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

  8. You can also watch our youtube video on “How to Apply on IPO”

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This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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