On Monday, October 31, subscriptions for DCX Systems’ initial public offering (IPO) will be available. Analysts continue to be optimistic about the situation. The company would sell its shares up until Wednesday, November 2, in lots of 72 equity shares or multiples thereof, at a price per share in the range of Rs 197-207.
A renowned manufacturer of electronic sub-systems and cable harnesses in India, DCX Systems Limited, is launching its initial public offering (IPO) of equity shares with a face value of Rs 2 each. The issue’s price per equity share range is Rs. 197 to Rs. 207. The issue size at the higher price band is Rs 500 crore.
The initial public offering (IPO) will begin on October 31, 2022, and end on November 2, 2022. On November 11, 2022, the issue is most likely to be listed on the exchange. The size of the IPO market lot is 72 shares or multiples thereof. Retail investors may submit up to 13 lots (936 shares, or Rs 193,752) at the highest price band.
In addition to the latest issue, the promoters of NCBG Holdings Inc. and VNG Technology are offering to sell equity shares for up to Rs 100 crore.
The business plans to use the net proceeds from the new offering to pay down debt, meet working capital needs and invest in its fully-owned subsidiary Raneal Advanced Systems to cover capital expenditure costs and for other general corporate objectives.
DCX Systems Limited was founded in December 2011 and is one of the major Indian manufacturers of electronic subsystems and cable harnesses for the defense and aerospace industries in terms of manufacturing capabilities and revenue.
They specialize in system integration and the production of a wide range of cables and wire harness assemblies. DCX Systems offers product assembly and system integration services to meet the needs of its customers. DCX Systems is also one of the largest IOPs for ELTA Systems Ltd. and Israel Aerospace Industries Ltd., System Missiles and Space Division, both of which are based in Israel.
The company operates from its manufacturing plant within the Hi-Tech Defence and Aerospace Park Special Economic Zone in Bengaluru, Karnataka.
Brokerages cite the company’s strong order books in the global aerospace and defense industries, clarity of cash flows, and the ability to take advantage of market tailwinds as its main strengths.
Some of the biggest concerns are high customer concentration risk, strong competition intensity, and high reliance on offset defense contracts.
According to one brokerage firm’s pre-IPO report, the post-issue P/E comes out to 30.5x FY22 EPS, which is low compared to its competitors Paras Defense and Space Technologies, Data Patterns (India), and Sundram Fasteners NSE 0.72%.
“Subscribe,” Manoj Dalmia, Founder & Director at Proficient Equities, said of the DCX Systems IPO. “DCX Systems Limited is a leading Indian manufacturer of electrical subsystems and wire harnesses.” DCX Systems had 26 customers, including Fortune 500 businesses, in Israel, the United States, Korea, and India. DCX system is positioned for great prospects with initiatives such as “Make in India,” “Atmanirbhar Bharat,” and others. Investors can subscribe based on its financial performance. “
Apart from the DCX System IPO, investors also have two more upcoming IPOs on their watchlist.
Global Health IPO: From November 3 to November 7, Global Health Limited, which maintains and administers hospitals under the Medanta brand, will hold a public offering. The IPO consists of a new issue of 500 crore equity shares and an offer-for-sale (OFS) of up to 5.08 crore equity shares.
Fusion Microfinance IPO: The initial share sale of microlender Fusion Microfinance, which is sponsored by global private equity firm Warburg Pincus, will begin on November 2 and close on November 4.
