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DCX Systems Limited IPO Detail

DCX Systems Limited IPO Detail

DCX Systems IPO opens on October 31st and closes on November 2nd, 2022. Company incorporates in December 2011, at Bangalore, Karnataka. They are among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022 in the defence and aerospace sector.

In Israel, the United States, Korea, and India, DCX Systems had 26 clients, including some Fortune 500 businesses, international enterprises, and start-ups. The company’s customers include domestic and international OEMs, private companies and public sector undertakings in India across different sectors, ranging from defence and aerospace to space ventures and railways.

Elta Systems Limited, Israel Aerospace Industries Limited – System Missiles and Space Division, Bharat Electronics Limited, and Astra Rafael Comsys Private Limited are a few of DCX System’s most important clients.

Company primarily engaged in

  1. System integration and
  2. manufacturing a broad range of cable and wire harness assemblies, and
  3. Kitting

Objects of the Issue

The company proposes to utilise the Net Proceeds of the Fresh Issue towards funding the following objects:

  1. Repayment/ prepayment, in full or part, of certain borrowings availed of by the Company.
  2. Funding working capital requirements of the Company.
  3. Investment in its wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses
  4. General corporate purposes

Financial Highlights

ParticularsPeriod ended on 30th June 2021FY 2020-21FY 2019-20
Total Assets763.41793.18698.85
Total Revenue128.69683.24465.23
Profit After Tax (PAT)3.3429.569.74
Total Borrowing133.98136.38112.62
(Rs in Crore)

DCX Systems IPO – Details

According to the DRHP filed by the company with SEBI, they are planning to raise about Rs 500 crores through this public issue. IPO opens on October 31st and closes on November 2nd, 2022.

Issue TypeBook Built Issue IPO
IPO PriceRs 197 to Rs 207 per share
Face ValueRs 2 per share
Market Lot72 shares
Issue Size[●] shares of Rs 2 (Aggregating up to Rs 500 crore)
Fresh Issue[●] shares of Rs 2 (Aggregating up to Rs 400 crore)
QIB Shares OfferedNot less than 75% of the offer
NII (HNI) Shares OfferedNot more than 15% of the offer
Retail Shares OfferedNot more than 10% of the offer
Listing AtBSE, NSE
PromotersNCBG Holding Inc,
VNG Technologies Private Limited

Important Dates for DCX Systems IPO

IPO opens onOct 31, 2022
IPO closes onNov 2, 2022
Basis of Allotment publication dateNov 7, 2022
Initiation of RefundNov 9, 2022
Credit of shares to Demat AccountNov 10, 2022
IPO listingNov 11, 2022

DCX Systems Limited IPO – Lot Size

ApplicationsLotsSharesAmount
Retail (Min)172Rs 14,908
Retail (Max)13936Rs 1,93,752
S-HNI (Min)141,008Rs 2,08,656
B-HNI (Min)684,896Rs 10,13,472

DCX Systems Limited IPO – Noteworthy Highlights

  • Leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022.
  • Rapidly growing company in the Indian defence space.
  • DCX Systems Limited is one of the largest Indian Offset Partner (“IOP”) for ELTA Systems Limited and Israel Aerospace Industries Limited, System Missiles and Space Division (together, the “IAI Group”), Israel, for the Indian defence market for manufacture of electronic sub-systems and cable and wire harness assemblies.

Also read: Technopack Polymers IPO Detail

DCX Systems IPO – SWOT Analysis

STRENGHTH

  1. Among the preferred Indian Offset Partners for the defence and aerospace industry with global accreditations.
  2. Technology enabled and scalable end-to-end capabilities.
  3. Well-positioned to capitalize on industry tailwinds
  4. Revenue from operations have grown at a CAGR of 56.64% between Fiscal 2020 and Fiscal 2022.
  5. Efficiency in operations resulting in timely delivery to its customers, maintaining quality control and product security.
  6. Quality management system

WEAKNESS

  1. Company drive most of its revenue from three main customers which accounted for 73.26%, 86.90%, 80.55%, 85.70% and 96.83% in in Fiscal 2020, 2021 and 2022 and in the three months ended June 30, 2021 and June 30, 2022, respectively. respectively. The loss of one or more such customers or a reduction in their demand for its products could adversely affect its business.

OPPORTUNITY

  1. The growing Indian landscape for defence and aerospace serves as a key opportunity for Company.
  2. The Indian aerospace and defence sector is poised to attain a value of USD 70 billion by 2030.
  3. Recent initiatives like increase in foreign direct investment (“FDI”) in the Indian defence sector from the current 49% to 74% under the automatic route is anticipated to be a key driver and growth opportunity for the market.

THREATS

  1. Company revenue significantly depends on defence contracts. Any change in the defence policy or Indian defence budget could adversely affect business of company.

Miscellaneous Information

Download Prospectus (PDF)IPO DRHP
IPO RHP
Company Contact InformationAerospace SEZ Sector, Plot Numbers 29,30 and 107,
Hitech Defence and Aerospace Park, Kavadadasanahal
Village, Devanahalli Taluk, Bengaluru Rural 562110
Phone: +91 80 6711 9555 / 9535
Email: [email protected]
Websitehttp://www.dcxindia.com/
IPO RegistrarLink Intime India Private Limited Phone: +91-22-4918 6270
Email: [email protected]
Websitehttps://linkintime.co.in/
IPO Lead Manager(s)Edelweiss Financial Services Limited
Axis Capital Limited
Saffron Capital Advisors Private Limited

FAQ’s

DCX Systems Limited IPO lot size is 72 shares.

DCX Systems IPO allotment on November 7, 2022.

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