DCX Systems Limited is among the leading Indian players in the manufacture of electronic sub-systems and cable harnesses. The company commenced operations in 2011 and has been a preferred Indian Offset Partner (“IOP”) for foreign original equipment manufacturers (“OEMs”) for executing aerospace and defence manufacturing projects.
In 2020, the company commissioned a new manufacturing facility at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka.
As of June 30, 2022, DCX Systems had 26 customers in Israel, the United States, Korea and India, including certain Fortune 500 companies, multinational corporations 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.
DCX System’s key customers include Elta Systems Limited, Israel Aerospace Industries Limited – System Missiles and Space Division, Bharat Electronics Limited, and Astra Rafael Comsys Private Limited, among others
In Fiscal 2020, 2021 and 2022 and in the three months ended June 30, 2021, and June 30, 2022, DCX Systems’ revenue from operations was Rs. 4,492.62 million, Rs. 6,411.63 million Rs. 11,022.73 million, Rs. 1,229.14 million and Rs. 2,132.54 million, respectively.
The company’s business verticals:
1. System integrationin areas of radar systems, sensors, electronic warfare, missiles, and communication systems.
2. Cable and Wire Harness Assemblies.
3. The company supplies assembly-ready kits of electronic and electro-mechanical parts.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31-Mar-20 | 698.85 | 465.23 | 9.74 | 133.98 |
| 31-Mar-21 | 793.18 | 683.24 | 29.56 | 136.38 |
| 30-Jun-21 | 763.41 | 128.69 | 3.34 | 112.62 |
| Amount in ₹ Crore |
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 our wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses.
4. General corporate purposes.
DCX Systems IPO Details
| IPO Date | Oct 31, 2022 to Nov 2, 2022 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price | ₹197 to ₹207 per share |
| Lot Size | 72 Shares |
| Issue Size | [.] shares of ₹2 (aggregating up to ₹500.00 Cr) |
| Fresh Issue | [.] shares of ₹2 (aggregating up to ₹400.00 Cr) |
| Offer for Sale | [.] shares of ₹2 (aggregating up to ₹100.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not less than 75% of the Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Offer |
| Retail Shares Offered | Not more than 10% of the Offer |
| Company Promoters | NCBG Holdings Inc and Vng Technology Private Limited are the company promoter. |
DCX Systems IPO Tentative Timetable
DCX Systems IPO opens on Oct 31, 2022, and closes on Nov 2, 2022. The DCX Systems IPO bid date is from Oct 31, 2022 10.00 A.M. to Nov 2, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 5 PM on the issue closing day.
| Event | Tentative Date |
|---|---|
| Opening Date | Oct 31, 2022 |
| Closing Date | Nov 2, 2022 |
| Basis of Allotment | Nov 7, 2022 |
| Initiation of Refunds | Nov 9, 2022 |
| Credit of Shares to Demat | Nov 10, 2022 |
| Listing Date | Nov 11, 2022 |
DCX Systems IPO Lot Size
The DCX Systems IPO lot size is 72 shares. A retail-individual investor can apply for up to 13 lots (936 shares or ₹193,752).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 72 | ₹14,904 |
| Retail (Max) | 13 | 936 | ₹193,752 |
| S-HNI (Min) | 14 | 1,008 | ₹208,656 |
| B-HNI (Min) | 68 | 4,896 | ₹1,013,472 |
DCX Systems IPO Promoter Holding
| Pre Issue Share Holding | 98.20% |
| Post Issue Share Holding | 73.58% |
DCX Systems IPO Review
Off late, we are witnessing rising fancy for defence counters and even the Government of India has mooted many initiatives to boost this sector. With “Make in India”, “Atmanirbhar Bharat”, and other liberalized policies, DCXSL – the most preferred Indian offset partner – is poised for bright prospects. Based on its financial performance, the issue appears reasonably priced. Investors may consider investing in this issue for the medium to long-term rewards. Read detail review…
DCX Systems IPO Subscription Status (Bidding Detail)
The DCX Systems IPO is subscribed 0.37 times on Oct 31, 2022 11:23:00 AM. The public issue subscribed 1.75 times in the retail category, 0.00 times in the QIB category, and 0.24 times in the NII category. Check Day by Day Subscription Details (Live Status) Reload Subscription
| Category | Subscription (times) |
|---|---|
| QIB | 0.00 |
| NII | 0.24 |
| bNII (bids above ₹10L) | 0.21 |
| sNII (bids below ₹10L) | 0.29 |
| Retail | 1.75 |
| Total | 0.37 |
DCX Systems IPO Prospectus
Company Contact Information
DCX Systems Limited
Aerospace 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: cs@dcxindia.com
Website: http://www.dcxindia.com/
DCX Systems IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: dcxsystems.ipo@linkintime.co.in
Website: https://linkintime.co.in/