Dcx systems ipo

Bengaluru based DCX Systems Ltd (DCX) will float its maiden Initial Public Offering on October 31. DCX is one of the leading manufacturers of electronic sub-systems and cable harnesses in India. It started operations in 2011 and has been a preferred Indian Offset Partner (IOP) for foreign original equipment manufacturers (OEMs) for executing aerospace and defence manufacturing projects. Here are 10 key things to know before you subscribe to the issue: 1. IPO Dates The issue will open for subscription on October 31 (Monday) and the last day to subscribe to the public offer is November 2 (Wednesday). 2. Price Band The price band for the offer has been fixed between Rs 197 - 207 per equity share of face value Rs 2 each. 3. Offer Details The company plans to raise Rs 500 crore through this public issue that includes a fresh issue of Rs 400 crore comprising of 1.93 – 2.03 crore equity shares and an offer for sale (OFS) of Rs 100 crore comprising of 0.483 – 0.508 crore equity shares by promoters and selling shareholders. After the issue, the promoter shareholding will decline 24.61 percent and come down to 73.58 percent from the current 98.19 percent stake held by the them in the company. Of the total offer size, 75 percent of the net offer will be reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent is for retail investors. 4. Objectives of the Issue Out of the total proceeds from the fresh issue, Rs 110 crore will...

The initial public offering (IPO) of DCX Systems, a manufacturer of cables and wire harness assemblies, will open for public subscription next week on Monday, October 31, 2022. The company has cut the size of its fresh issue of equity shares to Rs 400 crore from Rs 500 crore planned earlier. Apart from the fresh issue, the DCX Systems IPO: Subscription The Rs 500 crore initial public offering (IPO) of DCX Systems will close for subscription on Wednesday, November 2, 2022. DCX Systems IPO: Price Band The price band for DCX Systems IPO has been fixed at Rs 197-207 per share. DCX Systems IPO: Issue Size The IPO consists of issuance of fresh equity shares worth Rs 400 with a face value of Rs 2 each. Existing promoters and shareholders will sell shares worth Rs 100 crore via an offer for sale (OFS). DCX Systems IPO: Lot Size Investors can subscribe to the DCX Systems IPO by betting for a lot of 72 shares or in multiples thereof. At the upper range of the price band, one lot of the IPO is worth Rs 14,904. A retail bidder can bid for 13 lots or 936 shares at maximum. DCX Systems IPO: Participating Shareholders NCBG Holdings and VNG DCX Systems IPO: Objective The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and general corporate purposes. Edelweiss Financial Services, Axis Capital and Saffron Cap...

Synopsis At a higher price band, DCX is demanding an EV/Sales multiple of 1.2x, which is lower than the peer average. Considering the favourable macros for the defence manufacturing sector and for the company, we feel the IPO is attractively priced, the brokerage said. Thus we assign a “SUBSCRIBE” rating for the issue, noted the brokerage. The share price band for the IPO has been fixed at Rs 197-207 per share. The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, and investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure and general corporate purposes. Here’s what brokerages suggest on the DCX public issue: • BP Equities The brokerage said the Indian government aims to be the $5 billion export nation by 2025 in the aerospace and defence space and this offers immense opportunities for companies like DCX to achieve the target. BP Equities has assigned a ‘subscribe’ rating to the issue for probable listing gains. “The shift from passive to active radar solutions will also provide numerous opportunities to the company. DCX maintains a healthy order book which has increased from Rs 1,941.3 crore as of FY2020 to Rs 2,369 crore as of FY2022. As of June 30, 2022, the order book stood at Rs 2,563.63 crore to be executed in FY2023 to 2025. However, any changes in the offset defence policies remain a key risk. On the valuation front, we value the company at a P/E of...

DCX Systems DCX Systems IPO Subscription Status On its last day, the IPO was subscribed 69.79 times, receiving bids for 101.27 crore equity shares against 1.45 crore shares on offer. While the qualified institutional buyer portion was subscribed 84.32 times, the non-institutional investors portion was subscribed 43.97 times. The retail portion also witnessed good participation and was subscribed 61.77 times. DCX Systems IPO: Price Band The price band for DCX Systems IPO has been fixed at Rs 197-207 per share. At least 75 per cent of the IPO is reserved for qualified institutional investors, up to 15 per cent for high-net-worth individuals, and 10 per cent for retail investors. DCX Systems IPO: Issue Size The IPO consists of issuance of fresh equity shares worth Rs 400 with a face value of Rs 2 each. Existing promoters and shareholders will sell shares worth Rs 100 crore via an offer for sale (OFS). DCX Systems IPO: Objective The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and general corporate purposes. DCX mopped up Rs 225 crore through its anchor book on October 28, ahead of the public issue opening. A total of 12 investors participated in the anchor book and the company finalized the allocation of 1.08 crore equity shares to anchor investors at a price of Rs 207 per share, which is th...

The initial public offering (IPO) of DCX Systems will open for subscription on Monday, October 31, and analysts remain positive on the issue. The company will sell its shares in the range of Rs 197-207 apiece till Wednesday, November 2, and in a lot size of 72 equity shares and its multiples thereof. According to brokerages, strong order books within the defence and aerospace industry with global accreditations, visibility of cash flows and being well-positioned to capitalize on industry tailwinds are the biggest positives for the company. High customer concentration risk, significant competitive intensity and high dependence on offset defence contracts are some of the biggest risks according to them. Investors participating in OFS include promoters of the company NCBG Holdings and Vng Technology who will offload more than 48.30 lakh equity shares during the process. The company has reserved 75% of shares for qualified institutional buyers, whereas 15% of shares are allocated to non-institutional bidders. The remaining 10% of shares will be reserved for retail bidders. The company has reported consistent financial performance over the years and is technology enabled with the capacity to scale further without incurring too much capital expenditure, said "There is a huge opportunity in offset business, where the MOD has announced offset backlog of $13.4 billion which needs to be completed in next seven years, out of which 25% belongs to DCX category," it added with a 'subscr...

The price band has been fixed at ₹197 to ₹207 per share. The has raised ₹225 crore from anchor investors days ahead of its initial share sale. ₹400 crore and an offer for sale of up to ₹100 crore. As per market observers, DCX Systems shares are commanding a premium (GMP) of ₹74 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. "DCX, being preferred IOP in the Defence & aerospace space is well placed to capture the industry tailwinds. We like its focus on revenue/geography diversification, customer base expansion and inorganic growth which could keep the earnings growth strong. It is valued at 30.5xFY22 P/E which is reasonable compared to listed peers. Given the fancy for Defence stocks and continuous news flows in that space, we expect the IPO to do well. We suggest investors to Subscribe for listing gains," said Motilal Oswal. The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure and general corporate purposes. The Bengaluru-based company is primarily engaged in system integration and manufacturing of a comprehensive array of cables and wire harness assemblies, and are also involved in kitting. “During FY20-22, DCX registered CAGR revenue, EBITDA, PAT growth of 56.6%, 228.3%, 159.5%, respectively. Its order book has in...

The Rs 500 crore initial public offering (IPO) by DCX Systems kicked off for subscription on Monday. The issue, which is being sold in the Rs 197-Rs 207 price band, has received 'subscribe' ratings from a host of brokerages, thanks to reasonable valuations, strong order book, visibility on cashflows and industry tailwinds. Last heard, the issue was commanding a grey market premium(GMP) of Rs 70. The IPO comprises of a fresh issue aggregating up to Rs 400 crore and an offer for sale (OFS) of up to Rs 100 crore. Retail investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter. At the upper limit of the price band, the post-issue PE works out to 30.5 times FY22 EPS, which is low compared with peers like Paras Defense & Space Technologies, Data Patterns and Sundram Fasteners. "DCX Systems has better revenue growth CAGR of 57 per cent and PAT CAGR of 159 per cent over the last two years. It has healthy return on equity and a strong order book of Rs 2,564 crore, which provide visibility for the next 2 years. Considering all the positive factors, we believe valuations are at reasonable levels," said Angel One, which has a subscribe rating on the issue. DCX Systems is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and are also involved in kitting. It has a manufacturing facility in Bengaluru, Karnataka. Sushil Finance said the asking price is at a PE of around 72 times,...