Home Business IPO Screening: DCX Systems IPO opens today in price range of ₹197-207

IPO Screening: DCX Systems IPO opens today in price range of ₹197-207


DCX Systems’ Rs 500 crore IPO opens for public subscription today. The offer price band was fixed at INR 197-207 at a face value of INR 2 each.

Bids can be made for a minimum of 72 shares and thereafter in multiples of 72 shares. Subscription for the number closes on November 2.

Of the total offering, 75 percent was reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.

New issue for Rs.400

The issue includes a fresh issue of Rs 400 crore and an offer for sale (OFS) of Rs 100 crore by the promoters and selling shareholders.

After the issue, the promoter’s share will decrease by 24.61 percent to 73.58 percent from the current 98.19 percent.

From the fresh issue, the company plans to use Rs 110 crore for prepayment/repayment of debt; ₹160 crore to finance working capital requirement; and another ₹ 44.9 crore for investment in its wholly owned subsidiary Raneal Advanced Systems to fund its capital expenditure.

Anchor investors

Ahead of Friday’s issue, the company had raised Rs 225 crore from mainstream investors by allotting around 1 crore shares at a ceiling price of Rs 207 per share.

Major investors in the main book included BNP Paribas, Volrado Venture Partners, Theleme, HDFC Large & Midcap Fund, Motilal Oswal Midcap Fund, Quantum, Resonance, Cohesion and others.

About DCX Systems

DCX Systems is one of the leading manufacturers of electronic subsystems and cable harnesses in India. Since its inception in 2011, it has become the Indian offset partner for foreign original equipment manufacturers (OEMs) executing aerospace and defense manufacturing projects.

Its business verticals include: systems integration in the areas of radar, sensors, electronic warfare, missiles and communications systems; assemblies of cables and wires; and supply of ready-to-assemble kits of electronic and electromechanical parts.

Moreover, in 2020, DCX commissioned a new manufacturing facility at the Hi-Tech and Aerospace Park SEZ in Bangalore, spanning over 30,000 square feet.

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