DCX Systems IPO
IPO Details
- Open Date 31-Oct-22
- Close Date 02-Nov-22
- Lot Size 72
- IPO Size ₹ 500.00 Cr
- IPO Price Range ₹ 197 to ₹207/share
- Min Investment ₹ 14184
- Listing Exchange NSE, BSE
- Basis of Allotment 07-Nov-22
- Refunds 09-Nov-22
- Credit to Demat Account 10-Nov-22
- Listing Date 11-Nov-22
DCX Systems IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 31-Oct-22 | 0.03x | 2.16x | 8.70x | 2.11x |
| 01-Nov-22 | 1.82x | 11.05x | 26.55x | 8.57x |
| 02-Nov-22 | 84.32x | 43.97x | 61.77x | 69.79x |
IPO Synopsis
DCX Systems IPO worth Rs. 500 crores open on 31st October and closes on 2nd November. The public issue comprises fresh issue of equity shares, aggregating up to Rs 400 crore, and an offer for sale of equity shares to the tune of up to Rs 100 crore by promoters -- NCBG Holdings Inc and VNG Technology. The lot size is said to be 72 shares per lot while the price band is fixed at Rs. 197 to Rs. 207 per share. The shares will be allotted on 7th November while the listing date is set for 11th November.
Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the issue.
Objective of DCX Systems IPO
The net proceeds from the issue will be used for:
1. Debt payment,
2. Fund working capital requirements,
3. Investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and
4. General corporate purposes
DCX Systems IPO Videos
About DCX Systems
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. The firm is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in FY2021. It is also one of the largest Indian Offset Partner (“IOP”) for ELTA Systems Limited and Israel Aerospace Industries Limited, System Missiles and Space Division (together, the “IAI Group”), Israel, for the Indian defence market for manufacture of electronic sub-systems and cable and wire harness assemblies
The manufacturing facility located at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka
It has 26 customers in Israel, United States, Korea and India, including certain Fortune 500 companies, multinational corporations and start-ups. The company caters to a mix of domestic and international customers and key customers include 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 and DCX-Chol Enterprises Inc.
Related Articles - Know about DCX Systems IPO GMP
DCX Systems Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 1124.3 | 641.2 | 449.3 |
| EBITDA | 83.9 | 10.1 | 30.5 |
| PAT | 65.6 | 29.6 | 9.7 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Total Assets | 942.6 | 793.2 | 698.8 |
| Share Capital | 15.5 | 3.5 | 3.5 |
| Total Borrowings | 502.6 | 136.4 | 134.0 |
| Particulars (in Rs. Crores) | FY21 | FY20 | FY19 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | -134.0 | 114.0 | 130.0 |
| Net cash from / (used in) investing activities | 0.3 | 20.8 | 21.1 |
| Net cash flow from / (used in) financing activities | 251.0 | 364.2 | -2.3 |
| Net increase (decrease) in cash and cash equivalents | 251.0 | 132.7 | 157.4 |
Peer Comparison
| Name of the Company | Total Revenue | Basic EPS | Nav Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| DCX Systems | 683.24 | 4.22 | 6.68 | NA | 63.18% |
| Bharat Electronics Limited | 14,233.65 | 8.62 | 45.45 | 23.79 | 19.00% |
| Data Patterns (India) Limited | 226.55 | 10.71 | 40.04 | 63.02 | 26.70% |
| Paras Defence and Space Technologies Ltd | 144.61 | 5.55 | 72.69 | 115.05 | 7.60% |
| Astra Microwave Products Ltd | 651.77 | 3.33 | 64.51 | 64.19 | 5.20% |
| Centum Electronics Ltd | 823.22 | 13.31 | 186.36 | 32.05 |
5.00% |
IPO Key Points
-
Strengths
1. Among the preferred Indian Offset Partners for the defence and aerospace industry with global accreditations
2. Technology enabled and scalable end-to-end capabilities
3. Business model with visibility of cash flows and ability to mitigate operational and technology risk
4. Strategically located in aerospace Special Economic Zone with an advanced and modern manufacturing facility
5. Well-positioned to capitalize on industry tailwinds -
Risks
1. Business is dependent on the sale of our products and services to our key customer
2. Any changes in offset defence policy or a decline or reprioritisation of funding in the Indian defence budget, or delays in the budget process as
3. Significant shortages of, or delay or disruption in the supply of raw materials could affect our estimated costs, expenditures and timelines
4. Any adverse changes in the conditions affecting the electronic subsystems market can adversely impact our business
5. Unable to obtain furnished equipment required for testing and qualifying the products from the customers which may have a material adverse effect
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
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IPO FAQs
What is the lot size and investment required for the DCX IPO?
The DCX Systems IPO lot size is 72 shares per lot. A retail-individual investor can apply for up to 13 lots (936 shares or ₹193,752).
What is the price band of the DCX IPO?
The price band of the IPO is set at Rs. 197 – Rs. 207 per share.
When does the DCX Systems IPO issue open and close?
The DCX Systems IPO opens on 31st October and closes on 2nd November.
What is the size of DCX Systems IPO issue?
The fresh issue of equity shares, aggregating up to Rs 400 crore, and an offer for sale of equity shares to the tune of up to Rs 100 crore by promoters.
Who are the promoters/key personnels of DCX Systems?
DCX Systems is promoted by Dr. H.S. Raghavendra Rao, NCBG Holdings Inc. and VNG Technology Private Limited.
What is the allotment date of DCX Systems IPO?
The allotment date is set for 7th November
What is the DCX Systems IPO’s listing date?
The issue will be listed on 11th November
Who are the book runners for DCX Systems IPO?
Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the issue.
What is the objective of the issue?
The proceeds will be used:
1. debt payment,
2. funding working capital requirements,
3. investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses
4. general corporate purposes
How to apply for the DCX Systems IPO?
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app