10 things to know about DCX Systems IPO that opens on October 31

Oct 31, 2022

By: bhakti.makwana@timesinternet.in

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IPO dates

The IPO of Bengaluru-based manufacturer of electronic sub-systems and cable harnesses is all set to open from October 31 and close on November 2. The price band of the IPO is ₹197-207 per share.

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How much money will the company raise via IPO?

DCX Systems plans to raise ₹400 crore through fresh issue of shares, along with an offer for sale of ₹100 crore by promoters and existing shareholders.

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What does the company do?

The company is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies; and kitting.

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More about the company

The company has 26 customers in Israel, US, Korea and India, including Fortune 500 companies, MNCs and start-ups. It has clients across sectors ranging from defense to aerospace, to space ventures and railways.

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Its profit grew multifold in the last three fiscal years

A significant portion of the company’s revenues are in US dollars due to exports. The rupee has depreciated significantly against the Dollar in the last one year.

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Where will IPO money be used?

IPO proceeds will be utilised towards debt repayment, funding working capital, investment in its subsidiary and general corporate purposes.

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High grey market demand

The grey market premium (GMP) of the company’s shares stood at ₹80 per share earlier. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

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Peer companies

Bharat Electronics, Data Patterns (India), Paras Defence and Space Technologies, Astra Microwave Product and Centum Electronics are some of DCX’s listed peers.

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Allotment date

The company’s shares are scheduled to be allotted on November 7.

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Listing date

DCX Systems will be listed on BSE and NSE on November 11.

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