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DCX Systems Limited is involved in the manufacturing of electronic sub-systems and cable harnesses for the defence and aerospace sector. The company plans to raise Rs 500 crore through initial public offering (IPO). The IPO comprises of fresh issue of shares worth Rs 400 crore and Offer For Sale of Rs 100 crore.
The subscription for the IPO opens on October 31 and closes on November 2. The price band is fixed at Rs 197-207 per equity share and the face value of the share is Rs 2 per share.
Company Summary
DCX Systems Limited is a leading manufacturer of electronic sub-systems and cable harnesses for the defence and aerospace sector. DCX commenced operations in 2011 and have been a preferred Indian offset partner for foreign original equipment manufacturers for executing aerospace and defence manufacturing projects.
DCX has a manufacturing facility located at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka. The company’s facility is spread over an area of 30,000 square feet and is set up for complete in-house environmental and electrical testing and wire processing.
The company has expanded its manufacturing capabilities and grown its order book over the years. As of June 30, 2022, the company had 26 clients across Israel, the United States, South Korea and India. The company’s revenue from operations have grown at a CAGR of 56.64% between Fiscal 2020 and Fiscal 2022.
The company’s operations include three business verticals, namely, System Integration, Cable and Wire Harness Assemblies and Kitting that includes supply of assembly ready kits of electronic and electro-mechanical parts.
The company has a mix of domestic and international customers that include Elta Systems Limited, Israel Aerospace Industries Limited – System Missiles and Space Division, 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, SFO Technologies Private Limited and DCX-Chol Enterprises Inc.
Company Strengths
- Preferred Indian manufacturer for the defence and aerospace industry with global accreditations.
- Technology advanced and scalable end-to-end capabilities.
- Sustainable 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.
- Consistent track record of strong financial performance.
- Experienced and qualified promoters and senior management team supported by a committed employee base.
Company Financials
Period Ended | Q1FY23 | FY22 | FY21 | FY20 |
Consolidated | Consolidated | Standalone | Standalone | |
Total Assets (in crore) | 1,011.61 | 942.62 | 793.18 | 698.85 |
Total Income (in crore) | 220.25 | 1,124.33 | 683.24 | 465.23 |
Profit After Tax (in crore) | 5.57 | 65.61 | 29.56 | 9.74 |
EBITDA (in crore) | 17.35 | 83.87 | 10.08 | 30.51 |
EBITDA Margin (%) | 8.14 | 7.61 | 1.57 | 6.79 |
ROE (%) | 4.52 | 55.79 | 63.18 | 56.75 |
ROCE (%) | 2.71 | 13.15 | 4.16 | 19.19 |
Purpose of the IPO
The net proceeds from the IPO will be utilised for the following purposes:
- Repayment or prepayment, in full or part, of certain borrowings availed of by the company aggregating to Rs 110 crore.
- Funding of working capital requirements of the Company aggregating to Rs 160 crore.
- The company plans to invest in its wholly-owned subsidiary, Raneal Advanced Systems Private Limited, with respect to its capital expenditure expenses totalling to Rs 44.88 crore.
- Other general corporate purposes.
Company Promoters
Dr. H.S. Raghavendra Rao, NCBG Holdings Inc. and VNG Technology Private Limited are the promoters of the company.
IPO Details
IPO subscription start date | Oct 31, 2022 |
IPO subscription end date | Nov 2, 2022 |
Face Value | Rs 2 per share |
Price band | Rs 197 to Rs 207 per share |
Lot Size | 72 Shares |
Issue Size | Rs 500 crore |
Fresh Issue | Shares aggregating up to Rs 400 crore |
Offer for Sale | Shares aggregating up to Rs 100 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 72 | Rs 14,904 |
Retail (Maximum) | 13 | 936 | Rs 1,93,752 |
Small HNI (Minimum) | 14 | 1,008 | Rs 2,08,656 |
Large HNI (Minimum) | 68 | 4,896 | Rs 10,13,472 |
Allotment Details
Timeline | Important Date |
Allotment of Shares | 7-Nov-22 |
Initiation of Refunds | 9-Nov-22 |
Credit of Shares to Demat Account | 10-Nov-22 |
IPO Listing Date | 11-Nov-22 |
To check your allotment, click here