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Yeh IPO kya kahta hai? DCX SYSTEMS LIMITED

All that you should know about the Company before applying for the IPO.

October 27, 2022     

The public issue of equity shares of DCX SYSTEMS LIMITED will open for subscription on October 31, 2022 and closes on November 02, 2022. It is expected to list on the stock exchanges on November 11, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Incorporated in 2011, DCX is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022 in the defence and aerospace sector. The company is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and is also involved in kitting. In addition, it also undertakes certain job work services that includes assembly and testing of materials that have been supplied directly by its customers. DCX is also one of the largest Indian Offset Partner for ELTA Systems Limited and Israel Aerospace Industries Limited, System Missiles and Space Division (together, the “IAI Group”), Israel, for the Indian defence market for manufacture of electronic sub-systems and cable and wire harness assemblies.

The company operates in 3 business verticals:

System Integration: Undertakes system integration in areas of radar systems, sensors, electronic warfare, missiles, and communication systems. It provides product assembly and system integration services of various complexities to address customers’ requirements. It also provides product repair support for the parts that it manufactures.

Cable and Wire Harness Assemblies: Manufactures a comprehensive array of cables and wire harnesses assemblies such as radio frequency cables, co-axial, mixed signal, power, and data cables for a variety of uses including communication systems, sensors, surveillance systems, missile systems, military armored vehicles, and other electronic warfare systems for the aerospace and defence industries.

Kitting: Supplies assembly ready kits of electronic and electro-mechanical parts and undertake all aspects of procurement.

Its manufacturing facility, spreaded over an area of 30,000 square feet, is located at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka. As of 30-Jun-2022, the company had 26 customers in Israel, United States, Korea and India. Certain of Its key customers include Elta Systems Limited, Israel Aerospace Industries Limited, Bharat Electronics Limited, Astra Rafael Comsys Private Limited, Alpha-Elsec Defense and Aerospace Systems Private Limited, Alpha Design Technologies Private Limited, Astra Microwave Products Limited, Kalyani Rafael Advanced Systems Private Limited.

Who are the Promoters of the Company?

Dr. H.S. Raghavendra Rao, NCBG Holdings Inc. and VNG Technology Private Limited

Positives about the Company

  • 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

Who are its listed peers?

  • Bharat Electronics Limited
  • Data Patterns (India) Limited
  • Paras Defence and Space Technologies Limited
  • Astra Microwave Products Limited
  • Centum Electronics Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Repayment/ prepayment, in full or part, of certain borrowings availed of by the Company.
  • Funding working capital requirements of the Company
  • Investment in wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses.
  • General corporate purposes

IPO Details

IPO Size ₹ 500 Crore
Offer Mix Fresh issue ₹ 400 Crore + Offer For Sell ₹ 100 Crore
Price Band ₹ 197 - ₹ 207
Lot Size 72 Shares (& in multiples thereof)
Face Value ₹ 2
Application Amount Min. ₹ 14,904 (1 lot) | Max. ₹ 1,93,752 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Link Intime India Private Limited
Cut-off time for UPI Mandate Confirmation 02-November-2022 (up to 05:00 PM)

Category Wise Availability

QIB ₹ 375 Crore
(75% of the Issue Size)
NIB ₹ 75 Crore
(15% of the Issue Size)
Retail ₹ 50 Crore
(10% of the Issue Size)

Indicative Issue Timeline

Activity Date
IPO Opens October 31, 2022
IPO Closes November 02, 2022
Finalization of the basis of allotment November 07, 2022
Unblocking of funds / Initiation of refunds November 09, 2022
Credit of equity shares to Demat accounts November 10, 2022
Listing of equity shares November 11, 2022
Source: Company RHP  Alternate Text


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