DCX Systems IPO opens today. These 10 points will help you decide whether to invest in the IPO

DCX Systems is among India's top cable harnesses and electronic sub-systems manufacturers.

DCX Systems IPO opens today

DCX Systems is a Bengaluru-based company that will launch its IPO on October 31. It is among India's top manufacturers of cable harnesses and electronic sub-systems. It started its work in 2011 and is a preferred IOP (Indian Offset Partner) for OEMs (Original Equipment Manufacturers) to execute defense manufacturing and aerospace projects. 

DCX Systems IPO Dates

The subscription will open on October 31 and close on November 2. 

DCX Systems IPO Price 

The price band will be Rs. 197-207/share. The face value is fixed at Rs. 2 each. 

Also Read: How to decide on IPO price?

DCX Systems IPO Details 

DCX Systems wants to raise Rs. 500 through its IPO, including Rs. 100 crore OFS (Offer for Sale) of 0.48-0.50 crore equity shares by selling shareholders and promoters and Rs 400 crore made up of 1.93-2.03 crore equity shares. 

DCX Systems IPO Objectives 

DCX Systems wants to use Rs. 110 crores from fresh issue proceeds to repay its debt. It will use Rs. 160 crores for funding working capital and Rs. 44.9 crores to invest in Raneal Advanced Systems, which it wholly owns. It will not receive any OFS portion proceeds. 

DCX Systems IPO Lot Sizes

An investor can bid for a lot size of a minimum of 72 shares and in its multiples. A retail investor's minimum investment would be Rs. 14,904 for 72 shares at the price band's upper end. Investors can apply for up to 13 lots. 13 lots equates to Rs. 1,93,752 for 936 shares. 

DCX Systems Profile and Industry

The company started its operations in 2011, and its verticals include missile, electronic warfare, sensors, and communication system integration. It also has Cable and Wire Harness Assemblies. Additionally, it also supplies electro-mechanical parts and electronic assembly-ready kits. 

DCX Systems ​​​Financials

DCX Systems reported good growth from FY19-22. Its system integration business increased, and the revenue and PAT were at 57% CAGR and 159%. Its EBIDTA increased to 6.1% in FY22 from 1.4% in FY20. Its revenue was Rs. 1,100 crores in FY22. 

DCX Systems Strength and Strategy

It is a preferred IOP (Indian Offset Partner) for the aerospace and defense industry. It has end-to-end scalable and technology-enabled capabilities along with global accreditations. It has positive cash flows and can fight risk effectively. It has a good financial performance track record. 

Also Read: The IPO market is heating up because of this!

DCX Systems Anchor Book 

It mopped Rs. 225 crores on October 28 through its anchor book before its IPO. 12 investors are a part of the anchor book, and 1.08 crore equity shares have been finalized to anchor investors @207/share. 

DCX Systems Grey Market and Dates 

The shares seem to command an Rs. 65-80/share premium in the grey market. Successful bidders will be allotted the shares on November 7. November 9 will see the refunds to the unsuccessful bidders. 

We have provided some valuable information regarding the IPO today and hope you got to know all you wanted. These 10 points will help you decide whether you wish to participate in the IPO. 

DCX Systems is a Bengaluru-based company that will launch its IPO on October 31. It is among India's top manufacturers of cable harnesses and electronic sub-systems. It started its work in 2011 and is a preferred IOP (Indian Offset Partner) for OEMs (Original Equipment Manufacturers) to execute defense manufacturing and aerospace projects. 

DCX Systems IPO Dates

The subscription will open on October 31 and close on November 2. 

DCX Systems IPO Price 

The price band will be Rs. 197-207/share. The face value is fixed at Rs. 2 each. 

Also Read: How to decide on IPO price?

DCX Systems IPO Details 

DCX Systems wants to raise Rs. 500 through its IPO, including Rs. 100 crore OFS (Offer for Sale) of 0.48-0.50 crore equity shares by selling shareholders and promoters and Rs 400 crore made up of 1.93-2.03 crore equity shares. 

DCX Systems IPO Objectives 

DCX Systems wants to use Rs. 110 crores from fresh issue proceeds to repay its debt. It will use Rs. 160 crores for funding working capital and Rs. 44.9 crores to invest in Raneal Advanced Systems, which it wholly owns. It will not receive any OFS portion proceeds. 

DCX Systems IPO Lot Sizes

An investor can bid for a lot size of a minimum of 72 shares and in its multiples. A retail investor's minimum investment would be Rs. 14,904 for 72 shares at the price band's upper end. Investors can apply for up to 13 lots. 13 lots equates to Rs. 1,93,752 for 936 shares. 

DCX Systems Profile and Industry

The company started its operations in 2011, and its verticals include missile, electronic warfare, sensors, and communication system integration. It also has Cable and Wire Harness Assemblies. Additionally, it also supplies electro-mechanical parts and electronic assembly-ready kits. 

DCX Systems ​​​Financials

DCX Systems reported good growth from FY19-22. Its system integration business increased, and the revenue and PAT were at 57% CAGR and 159%. Its EBIDTA increased to 6.1% in FY22 from 1.4% in FY20. Its revenue was Rs. 1,100 crores in FY22. 

DCX Systems Strength and Strategy

It is a preferred IOP (Indian Offset Partner) for the aerospace and defense industry. It has end-to-end scalable and technology-enabled capabilities along with global accreditations. It has positive cash flows and can fight risk effectively. It has a good financial performance track record. 

Also Read: The IPO market is heating up because of this!

DCX Systems Anchor Book 

It mopped Rs. 225 crores on October 28 through its anchor book before its IPO. 12 investors are a part of the anchor book, and 1.08 crore equity shares have been finalized to anchor investors @207/share. 

DCX Systems Grey Market and Dates 

The shares seem to command an Rs. 65-80/share premium in the grey market. Successful bidders will be allotted the shares on November 7. November 9 will see the refunds to the unsuccessful bidders. 

We have provided some valuable information regarding the IPO today and hope you got to know all you wanted. These 10 points will help you decide whether you wish to participate in the IPO. 

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