The initial public offering (IPO) of DCX Systems, a manufacturer of cable and wire harness assemblies, was subscribed 8.57x on the second day of offering on Tuesday. The DCX Systems IPO opened for public subscription on Monday, October 31, 2022 and will end on Wednesday, November 2, 2022.
The price band has been fixed at ₹197 to ₹207 per share. The company on Friday said it has raised Rs 225 crore from anchor investors, days ahead of its initial share sale.
The initial share sale 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.
According to market observers, the shares of DCX Systems are commanding a premium (GMP) of ₹82 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.
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.
“At the higher price band, DCX is seeking an EV/sales multiplier of 1.2x, which is lower than the equivalent average. Considering the defense manufacturing sector and the favorable macro for the company, we feel the IPO price Attractive." Choice Broking.
“The company has delivered consistent financial performance. Their revenue from operations grew at a CAGR of 56.64% between FY 20-22. The company has a strong order book of Rs. 2563 crores as of June, 2022. In the upper band, the issue price is Rs. The price is at a PE multiple of about 30x (post fresh issue) based on FY22 metrics, which seems reasonable. Abhay Doshi, Co-Founder, Unlisted Arena, said, “With a view to promoting indigenous manufacturing and export of defense equipment, Defense stocks have remained the flavor of the recent past due to government initiatives.
Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers of the IPO. LINK INTIME INDIA PRIVATE LIMITED is the registrar of share sale.
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