|Opening Date||31, October 2022|
|Closing Date||02, November 2022|
|Refund Initiation||09, November 2022|
|Listing Date||11, November 2022|
|Face Value||₹2 per equity share|
|IPO Price Band||₹197 to ₹207 per equity share|
|Minimum Order Quantity||72 Shares|
|Issue Size||₹500.00 Cr|
The month of October 2022, saw a couple of IPOs getting listed in the secondary market. These were Electronics Mart India Ltd and Tracxn Technologies Ltd. Whereas Electronics Mart India Ltd proved to be a once in a lifetime opportunity, generating 43% listing gains, Tracxn Technologies also performed superbly, listing at 17% returns. The retail subscription for these IPOs saw an overwhelming response, describing that retail investors are eager to to invest. After Electronics Mart India Ltd, which received a whopping 20.77 times subscription from retail investors, all eyes are now aimed at DCX Systems, which is going live with its IPO on 31st October. Let’s learn in detail all its financials and if this IPO is worth investing in or not!
Incorporated in 2011, DCX Systems Ltd is amongst the leading Indian players for the manufacture of electronic subsystems and cable harnesses. The company is primarily engaged in system integration and manufacturing of a comprehensive array of cables and wire harness assemblies and is also involved in kitting. The company is rapidly growing in the Indian defense space with revenue from operations grown at a CAGR of 56.64% between Fiscal 2020 - 2022.
As of June 30, 2022, the Company holds 26 customers in Israel, United States, Korea and India. DCX System's key customers include Elta Systems Ltd, Israel Aerospace Industries Ltd - System Missiles and Space Division, Bharat Electronics Ltd, and Astra Rafael Comsys Private Ltd, Astra Microwave Products Ltd among others.
The financials of the company for the last three years are detailed as below -
|Particulars||Three month period ended June 30, 2022||As of and for the Financial Year ended March 31|
|Equity share capital||15||15||4||4|
|Revenue from Operations||213||1102||641||449|
|Profit / (Loss) after Tax||6||66||30||10|
|Earnings per Share (₹ / share)(diluted)||0.7||9.2||4.2||1.4|
Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - DCX Systems date and its share price.
According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from October 31 and will be available for subscription until November 2, 2022.
The total issue size of the latest DCX Systems is declared to be ₹500 crores. This is a mix of a fresh issue, and an offer for sale. The company is offloading shares worth ₹100 crores in OFS and is raising ₹400 crores via fresh issue.
75% of the offer is for QIBs (Qualified Institutional Buyers), 10% for retail investors, and the balance 15% for NIBs (Non-institutional Investors).
The price band of the company’s upcoming IPO is declared to range between ₹197 to ₹207 per equity share
Since the IPO of DCX Systems is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)
The net proceeds of the Issue, i.e. gross proceeds of the Issue (“from Fresh Issue”) are proposed to be utilized in the following manner:
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