• DCX Systems IPO will open on Monday, October 31, 2022 and end on Wednesday, November 2.
The three-day initial public offering (IPO) of DCX Systems, manufacturer of cable and wire harness assemblies, will open for public subscription next week on Monday, October 31, 2022, and end on Wednesday, November 2, 2022. The company has fixed a price band of ₹197 to ₹207 per share for its initial share sale.
According to market observers, the shares of DCX Systems are commanding a premium (GMP) of ₹80 in the gray market today. The company's shares are expected to be listed on the stock exchanges BSE and NSE on Friday, November 11, 2022.
DCX Systems IPO involves issue of fresh equity shares worth ₹400 crore. In addition to the fresh issue, the promoters and shareholders of the company will sell shares worth Rs 100 crore through an offer for sale (OFS). NCBG Holdings and VNG Technology are the promoters of the company.
DCX Systems Limited, a Bengaluru based company, is primarily engaged in System Integration and manufacturing of a wide range of Cable & Wire Harness Assemblies, and is also involved in Kiting.
Incorporated in 2011, DCX Systems Limited (DSL) is one of the leading Indian players in the manufacturing of electronic sub-systems and cable harnesses. The company operates through its manufacturing facility located at Hi-Tech Defense and Aerospace Park SEZ in Bengaluru, Karnataka.
“In valuation terms, the post-issue P/E works out to 30.5x FY22 EPS (at the upper end of the issue price band) which is lower than its peers like Paras Defense & Space Technologies Ltd, Data Pattern (India) ) Ltd. and Sundaram Fasteners Ltd. In addition, DSL has better Revenue / PAT growth (CAGR of 57% / 159% respectively) over 2 years, healthy return on equity and the company also has a strong order book which is expected to grow next year. Provides visibility for 2 years. Considering all the positive factors, we believe this valuation is at an appropriate level," Angel One said in an IPO note.
Investors can bid for a minimum of 72 equity shares and thereafter in multiples of 72 equity shares. Edelweiss Financial Services, Axis Capital and Kesar Capital Advisors are the book running lead managers of the issue. LINK INTIME INDIA PRIVATE LIMITED is the registrar of share sale.
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