The IPO of DCX Systems has opened for subscription with a price band of Rs 197-207 per share with a Face Value of Rs 2 per share...

The IPO of DCX Systems has opened for subscription.

DCX Systems is a services company that caters to small, medium, and large businesses in the Aerospace, Land & Naval Defence systems, Satellites, and Civil Aviation companies. It manufactures build-to-print and customized Cable & Wire harness assemblies, undertakes system integration services & supplies ready-to-assemble kits. 

It began operations in 2011 and is the largest Indian Offset Player for the IAI Group, Israel. The company reportedly has 26 clients in Israel, the USA, Korea, and India, which includes several Fortune 500 companies. 

The company filed its DRHP for approval with the markets regulator in April 2022 wherein the company sought to raise Rs 600 crores through its public issue. It received the approval to float its IPO in July 2022.

The issue has opened for subscription today and will close on 2nd November. The shares have a price band of Rs 197-207 per share with a Face Value of Rs 2 per share. 

Each lot will have 72 shares of the company, bringing the cost of each lot to Rs 14,904. This brings the total issue to Rs 500 crores of which Rs 400 crores will be a fresh issue while the balance is an OFS. After the issue, the promoters' shareholding will decline by 24.61% to 73.58% in the company. 

75% of the issue has been reserved for Qualified Institutional Buyers, 15% for Non-Institutional Investors, and the remaining 10% for Retail investors. 

The funds of the fresh issue will be used to repay/prepay debt- Rs 110 crores, fund working capital requirement- Rs 160 crores, invest in wholly owned subsidiary Raneal Advanced Systems- Rs 45 crores, and other general corporate purposes. 

For FY22, the company reported revenues of Rs 1,100 crores, up 72% YoY, with an EBITDA margin of 6.1% and PAT of Rs 56.5 crores, up 90.8% YoY! 

Edelweiss Financial Services, Axis Capital, and Saffron Capital Advisors are the book-running lead managers to the issue, while Link Intine India is the registrar. 

Article by Aman Agarwal.

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