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The ₹500-crore DCX Systems’ IPO opens for pubic subscription today. The price band of the offer has been fixed at ₹197-207 of face value of ₹2 each.
Bids can be made for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter. The issue will close for subscription on November 2.
Of the total offer size, 75 per cent has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
₹400-cr fresh issue
The issue includes a fresh issue of ₹400 crore and an offer-for-sale (OFS) of ₹100 crore by promoters and selling shareholders.
After the issue, the promoter shareholding will decline by 24.61 per cent to 73.58 per cent, from the current 98.19 per cent stake.
From the fresh issue, the company plans to utilise ₹110 crore for the prepayment/ repayment of debt; ₹160 crore to fund working capital requirementa; and another ₹44.9 crore for investment in a wholly-owned subsidiary, Raneal Advanced Systems, to fund its capital expenditure expenses.
Anchor investors
Ahead of the issue on Friday, the company raised ₹225 crore from anchor investors by allocating about 1 crore equity shares at the upper price band of ₹207 per equity share.
Marquee investors in the anchor book included BNP Paribas, Volrado Venture Partners, Theleme, HDFC Large & Midcap Fund, Motilal Oswal Midcap Fund, Quantum, Resonance, Cohesion, etc.
About DCX Systems
DCX Systems is one of the leading manufacturers of electronic sub-systems and cable harnesses in India. Since commencing operations in 2011, It has emerged as a Indian Offset Partner for foreign original equipment manufacturers (OEMs)r executing aerospace and defence manufacturing projects.
Its business verticals include: System integration in the areas of radar systems, sensors, electronic warfare, missiles, and communication systems; cable and wire harness assemblies; and supply of assembly-ready kits of electronic and electro-mechanical parts.
Moreover, DCX commissioned a new manufacturing facility at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru in 2020, which is spread over 30,000 sq. ft.
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