DCX System IPO ends with strong subscription

Published on Nov 03, 2022 10:15

The initial public offer (IPO) of DCX System received bids for 1,01,27,44,152 shares as against 1,45,11,146 shares on offer. The issue was subscribed 69.79 times.

The Retail Individual Investors (RIIs) category was subscribed 61.77 times. The Qualified Institutional Buyers (QIBs) category was subscribed 84.32 times. The Non Institutional Investors (NIIs) category was subscribed 43.97 times.

The issue opened for bidding on Monday (31 October 2022) and it closed on Wednesday (2 November 2022). The price band of the IPO was fixed at Rs 197 to 207 per share.

The issue comprises of both fresh issue of equity shares by the company and offer for sale by promoter selling shareholders. Fresh issue involves issue of equity shares aggregating up to Rs 400 crore. Offer for sale involves selling of equity shares aggregating up to Rs 100 crore.

Of the net proceeds from the fresh issue, the company plans to utilize about Rs 110 crore for repayment of debt, Rs 160 crore for funding working capital requirements of the company, and Rs 44.883 crore for investment in Raneal Advanced Systems (RASPL), the wholly owned subsidiary of the company to fund its capital expenditure.

Ahead of the IPO, DCX System on Friday, 28 October 2022, raised Rs 224.99 crore from anchor investors. The board allotted 1.08 crore shares at Rs 207 per share to 12 anchor investors.

DCX Systems is one of leading Indian manufacture of electronic sub-systems and cable harnesses in defence and aerospace sector. Operations of the company are classified as system integration, cable and wire harness assemblies, and kitting.

In FY2022, about 85.3% of the revenue came from system integration, 12% from kitting and 2.7% from cable and wire harness assemblies.

The company reported a net profit of Rs 5.57 crore and net sales of Rs 213.25 crore in the quarter ended on 30 June 2022.