DCX Systems IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 16, 2022DCX Systems Limited is a notable manufacturing company in the Indian Market. The company manufactures electronic sub-systems and cable harnesses. The company started its operations in 2011.
DCX Systems is preparing to float its IPO of Rs. 600 crores in the stock market. The DCX Systems IPO will comprise a fresh issue and an offer for sale.
DCX Systems IPO Review will help you understand all the facts about the IPO and its prospects for you.
| Face Value | Rs. 2 |
| Price Band | Rs. 197 to Rs. 207 per share |
| Listing At | BSE, NSE |
| Min. Order Quantity | 72 shares |
| Listing Date | Nov 11, 2022 |
| Offer for Sale | Rs.100 Crore |
| Fresh Issue | Rs.400 Crore |
| IPO Size | Rs.500 Crore |
| Tick Size | 1 |
DCX Systems IPO Overview
In this comprehensive study of DCX Systems IPO, we will analyze the company’s operations, its product portfolio, and scalability. Also, we will include every element of the IPO.
DCX Systems will be offering shares through Fresh Issue and Offer for Sale. Fresh Issue will be up to Rs 400 crore, and the Offer for Sale will be up to Rs 100 crore. Promoters will sell their shares in the share sell.
The company might also consider a pre-placement of shares of up to Rs. 50 crore.
DCX Systems IPO Important Dates
| Events | Date |
| IPO Opening Date | Oct 31, 2022 |
| IPO Closing Date | Nov 2, 2022 |
| Basis of Allotment Finalization | Nov 7, 2022 |
| Refunds Initiation | Nov 9, 2022 |
| Credit of Shares to Demat Account | Nov 10, 2022 |
| Share Listing Date | Nov 11, 2022 |
DCX Systems Limited has filed the Draft Red Herring Prospectus (DRHP) with the capital market regulator Securities and Exchange Board of India (SEBI) on 4th April 2022.
Now, the company has received the SEBI observation. The company is preparing to open its IPO post Diwali on 31st October 2022. The equity shares of the company will then be listed on stock exchanges on Nov 11, 2022.
DCX Systems IPO Date have been added in the above table from where you will get all the details. The IPO will be open between 31st October to 2nd November.
DCX Systems IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs. 197 to Rs. 207 per share |
| Offer for Sale | Rs.100 Crore |
| Fresh Issue | Rs.400 Crore |
| IPO Size | Rs.500 Crore |
IPO Size means the total number of shares offered through the Initial Public Offering. DCX Systems IPO Size will consist of the shares offered in the fresh Issue and offer for sale. DCX Systems IPO Price will be discovered through the Book Building Process.
The company will determine the floor price with the help of an assessment of the market demand in consultation with the Lead Managers of the Issue. The face value of the offered shares is Rs. 2 each.
DCX Systems IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 11 Nov 2022 | Rs. 85 | Rs. 300 | Rs. 5000 |
| 10 Nov 2022 | Rs. 85 | Rs. 300 | Rs. 5000 |
| 09 Nov 2022 | Rs. 85 | Rs. 300 | Rs. 5000 |
| 08 Nov 2022 | Rs. 75 | Rs. 300 | Rs. 5000 |
| 07 Nov 2022 | Rs. 75 | Rs. 300 | Rs. 5000 |
| 06 Nov 2022 | Rs. 75 | Rs. 300 | Rs. 5000 |
| 05 Nov 2022 | Rs. 75 | Rs. 300 | Rs. 5000 |
| 04 Nov 2022 | Rs. 80 | Rs. 300 | Rs. 5000 |
| 03 Nov 2022 | Rs. 80 | Rs. 200 | Rs. 5000 |
| 02 Nov 2022 | Rs. 80 | Rs. 200 | Rs. 5000 |
| 01 Nov 2022 | Rs. 70 | Rs. 200 | Rs. 5000 |
Grey Market or the parallel market is a trading setting where the traders bid and offer shares of the issuer company. This process is done before listing the shares on the stock exchanges.
The Grey Market activities play a vital role in determining issue prices. Investors and experts closely watch the fluctuations of this market.
Details in regard to DCX Systems IPO GMP are now available and you can check them.
DCX Systems IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 31st Oct | 0.03x | 2.16x | 8.70x | 2.11x |
| 2nd Day – 1st Nov | 1.82x | 11.05x | 26.55x | 8.57x |
| 3rd Day – 2nd Nov | 84.32x | 43.97x | 61.77x | 69.79x |
| Shares Offered or Net Issue | 8,165,969 | 3,807,106 | 2,538,071 | 14,511,146 |
DCX Systems is preparing to float the IPO worth Rs. 500 crore in full swing. The company submitted the documents seeking SEBI approval to launch the IPO in August and is now gearing up to open the IPO.
DCX Systems has received the SEBI nod, it will now file the Red Herring Prospectus with the registrar and open for subscription. Dates for DCX Systems IPO Subscription have been determined.
DCX Systems IPO Allotment Status
The allotment is the process where the company credits the shares in Demat Accounts of the successful bidders.
DCX Systems IPO Allotment will be finalized on Nov 7, 2022. The company and the Book Running Lead Managers will determine the basis of allotment.
DCX Systems IPO Live Performance
You can track the DCX Systems IPO Performance from here. The updated DCX Systems IPO Price will be indicated here.
Subscribe to DCX Systems IPO – Open Free Demat Account Now!
DCX Systems – Company Review
Incorporated in 2011, DCX Systems started its journey as “DCX Cable Assemblies Private Limited.” The company is based in Bengaluru, Karnataka.
In 2021, the company changed its name to “DCX Systems Private Limited.” Also, in January 2022, the company changed its status from a private company to a public company in pursuance of the IPO.
DCX Systems is among the leading entities engaged in manufacturing electronic sub-systems and cable harnesses. It is a fast-growing company serving the Indian Defence Sector.
It is a preferred Indian Offset Partner when it comes to foreign original equipment manufacturing.
Products or Services
DCX Systems Limited specializes in manufacturing cables, wire harness assemblies, and kitting. They are a wide supplier and offer protective and reliable products to their customers.
India’s Defence and Aerospace sectors have brought immense opportunities for the company. DCX Systems is a reputed Indian Offset Partner for ELTA Systems Limited, Israel Aerospace Industries Limited, System Missiles, and Space Division.
The company manufactures electronic sub-systems & cable and wire harness assemblies for these esteemed entities and the Indian Defence Market.
Promoters and Holding
The Promoters of DCX Systems Limited are:
- H.S. Raghavendra Rao
- NCBG Holdings Inc.
- VNG Technology Private Limited
The management of the company are:
- H.S. Raghavendra Rao, in the position of Chairman and Managing Director
- Neal Jeremy Castleman in the position of Non-Independent and Nonexecutive Director
- Sankarakrishnan Ramalingam in the position of Whole-time Director
- Kalyanasundaram Chandrasekaran in the position of Independent Director
- Panchangam Nagashayana in the position of Independent Director
- Lathika Siddharth Pai, in the position of Independent Director
- Ranga KS, in the position of Chief Financial Officer
- Shiva Kumara R in the position of Vice President
- Nagaraj R Dhavaskar in the position of Company Secretary
Is DCX Systems good for Investment?
DCX Systems Limited is a fast-growing entity. It depends on its key customers for a substantial portion of its revenue from operations.
They specialize in their manufacturing niche and undertake designing, manufacturing, and testing.
Their services include – Cable & Harness Assemblies, Fine wire cable assemblies, Flex flat cable assemblies, EMI shield cable Harness, Wired Enclosures, Backplane Assemblies, Diagnostic Test Sets, Conduit Assemblies, and Special/Customized connectors.
Sector-wise their operational strengths are admirable. They are serving the Defence sector and aerospace and offer services in industrial automation also.
DCX Systems Financial Statements
| Amount (in INR & Million) | |||||
| 31-Dec-21 | 31-Dec-20 | Mar-21 | 31-Mar-20 | Mar-19 | |
| Assets | 7,631.25 | 7,143.56 | 7,931.78 | 6,988.47 | 4,889.46 |
| Revenue | 7,492.49 | 5,872.66 | 6,832.42 | 4,652.29 | 3,090.70 |
| Expense | 7,056.41 | 5,453.44 | 6,434.36 | 4,523.62 | 3,017.67 |
| Profit After Tax | 331.95 | 282.90 | 295.58 | 97.44 | 45.86 |
DCX Systems Limited is a profit-making company and has made year-on-year profits for the past financial years.
In the last nine months ending 31 December 2021, the company earned a total revenue of 7,492.49 million. The profit for the same period was 331.95 million.
The total income for 2019, 2020, and 2021 were – 3,090.70 million, 4,652.29 million, and 6,832.42 million. The profits for 2019, 2020, and 2021 were – 45.86 million, 97.44 million, and 295.58 million.
As can be observed, DCX Systems Limited has positively enhanced its operations and revenues over the years.
| Earnings per Equity Share (in Million) | |||||
| 31-Dec-21 | 31-Dec-20 | Mar-21 | 31-Mar-20 | Mar-19 | |
| Basic & Diluted | 4.74 | 4.04 | 4.22 | 1.39 | 0.66 |
DCX Systems Limited EPS is moving upward gradually with every year. The EPS in the three quarters of 2021 was 4.74, which has increased from that in 2020, which stood at 4.04.
DCX Systems IPO Review
With the upcoming DCX Systems Limited IPO, two of the Promoters, NCBG Holdings INC. and VNG Technology Private Limited, are offloading their shares from the company.
Each one of the promoters will be offering shares worth Rs. 50 crore. The proceedings from the Offer for Sale will be entitled to the selling shareholders.
The proceedings of the Fresh Issue will be utilized towards debt repayment and to fund capital expenditure requirements of its wholly-owned subsidiary, Raneal Advanced Systems Private Limited.
Further, it will be utilized for funding working capital requirements. The IPO will strengthen the company’s financial position and fund its operations.
DCX Systems IPO Details
Here are few more details you need to know before investing in DCX Systems IPO –
DCX Systems IPO Issue Object
DCX Systems has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Repayment/ prepayment, in full or part, of certain borrowings availed of by our Company;
- Funding working capital requirements of our Company;
- Investment in our wholly-owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses; and
- General corporate purposes (collectively, referred to herein as the “Objects”).
DCX Systems IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Among the preferred Indian Offset Players for the defence and aerospace industry with global accreditations.
- Technology-enabled and scalable end-to-end capabilities.
- Business model with visibility of cash flows and ability to mitigate operational and technology risk.
- Strategically located in Special Aerospace Economic Zone with an advanced and modern manufacturing facility.
- Well-positioned to capitalize on industry tailwinds.
- Track record of consistent financial performance.
- Experienced and qualified Promoters and senior management team supported by a committed employee base.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 4.22 | 63.18 | 6.68 |
| 31-Mar-20 | 1.39 | 56.75 | – |
| Mar-19 | 0.66 | 61.54 | – |
DCX Systems IPO Lead Managers
Here are the list of Lead managers –
- Edelweiss Financial Services Limited
- Axis Capital Limited
- Saffron Capital Advisors Private Limited
DCX Systems IPO Registrar to offer
Check out the details of registrar here –
Link Intime India Private Limited
C-101, 1st Floor
247 Park Lal Bahadur Shastri Marg
Vikhroli (West) Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: dcxsystems.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor Grievance ID: dcxsystems.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration Number: INR000004058
DCX Systems IPO – Other Details
- Statutory Auditor – M/s NBS & Co., Chartered Accountants
- Legal Counsel to the Company – J. Sagar Associates
- Bankers to the Company – HDFC Bank Limited, ICICI Bank Limited, State Bank of India and Axis Bank Limited
DCX Systems IPO – Conclusion
The DCX Systems Limited operates in a specialized industry whose customer base is limited, and it relies for revenue on its key customers.
It is a fast-growing company, and therefore, the IPO can be a great opportunity to explore its potential and reap fruitful results for its investors. Investors should consciously decide to get aboard on this journey.
To Subscribe to DCX Systems IPO – Open Demat Account Now!
DCX Systems IPO Review FAQs
Check out the FAQs on DCX Systems IPO –
What is the Issue Size of DCX Systems IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of DCX Systems IPO?
The price band for this particular IPO ranges between Rs. 197 to Rs. 207. As far as the face value of the share is of concern, it is Rs.2 per share.
What is the DCX Systems IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Oct 31, 2022, while the closing date is set at Nov 2, 2022.
What is the DCX Systems IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on Nov 7, 2022, refund initiation is on Nov 9, 2022, credit of shares is on Nov 10, 2022, and share listing date is on Nov 11, 2022.
What is the DCX Systems IPO Listing Date?
Shares of this company shall be listed in the exchanges Nov 11, 2022. The date, when the listing would be done, is stagnant on Nov 11, 2022.
Who is the Registrar of DCX Systems IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of DCX IPO?
Here are the promoters of this IPO – Dr. H.S. RAGHAVENDRA RAO, NCBG HOLDINGS INC. AND VNG TECHNOLOGY PRIVATE LIMITED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of DCX Systems IPO?
They have obtained the GMP of this IPO and it is Rs. 85. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is DCX Systems IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of DCX Systems Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2021 in Million is 295.58, 2020 is 97.44, 2019 is 45.86. PAT from Dec 2021 is 331.95.
Featured Topics