Jobaaj Stories
Friday marked the debut of DCX systems as the company's stock made a profitable debut.
Here at Jobaaj, we discussed the IPO of DCX Systems which provides a variety of services to Aerospace, Land & Naval Defence systems, Satellites, and Civil Aviation companies. Shares of the company were allotted to investors on 7th November.
The public issue was well received as investors rushed to apply for the IPO. The QIBs, for whom 75% of the issue was reserved, took particular interest in the issue as the QIB portion was oversubscribed 84.32x times!! HNIs and RIIs followed suit as their portions saw an oversubscription of 43.97x and 61.77x times respectively. This meant that the entire Rs 500 crore IPO was subscribed 69.79x times!!
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The company was also able to attract 12 investors to invest in its anchor book. Volrado Venture Partners Fund, Cohesion MK Best Ideas, Quantum State Investment Fund, India SME Investments, Theleme India Master Fund, Resonance Opportunities Fund, Vikasa India EIF I Fund, and BNP Paribas Arbitrage invested a total of Rs 225 crores as anchor investors.
The shares, which were offered at a price of Rs 207 per share, showed signs of a strong listing early on. In the grey market, the stock was trading at a premium of 88-90, equivalent to a premium of 45%, before listing.
The stock listed at 9:45 at Rs 287 per share, a premium of 38.65%! By afternoon, the share touched a high of Rs 319.90 per share after which it declined to close at Rs 308.45 per share ultimately.
An initial investment of Rs 14,904 (72 shares x Rs 207 per share) grew up to Rs 22,208 (72 shares x Rs 308.45 per share) in a single trading session!
Analysts claim that the robust listing is supported by the industry's reasonable valuations and government initiatives like Make-In-India, giving the company several growth opportunities later on.
As such, brokerages have mixed opinions on the stock. Some are suggesting their clients book partial profits and hold the remaining for Long-term while others are suggesting investors to book profit due to current market conditions.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
