DCX Systems IPO: Issue subscribed 77% so far on day 1

The initial public offering (IPO) of DCX Systems, an electronic sub-systems and cable harnesses manufacturer, has received bids for 1.11 crore shares against an IPO size of 1.45 crore shares  amounting to a subscription of 77 per cent at 1:10 pm on the first day of bidding.

The quota for retail investors was subscribed 3.57 times shares of the allotted quota, while the portion set aside for non-institutional investors was subscribed 55 percent.

The issue has a price band of Rs 197-Rs 207. The IPO comprises a fresh issue aggregating up to Rs 400 crore and an offer for sale (OFS) of up to Rs 100 crore.

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Retail investors can apply for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter. A retail-individual investor can apply for a maximum of 13 lots (936 shares by spending Rs 193,752).

The grey market premium (GMP) of the IPO stood at Rs 70, according to IPOwatch.  The IPO will close on November 2. Allotment of shares will be done on November 7 and listing of the stock is likely to take place on November 11, 2022.

Link Intime India Private Ltd is the registrar and Edelweiss Financial Services, Axis Capital Limited and Saffron Capital Advisors Private Limited are merchant bankers to the IPO.

DCX Systems proposes to utilise the net proceeds from fresh issue towards repayment certain borrowings (Rs 110 crore). It intends to  fund working capital requirements to the tune of Rs 160 crore. It is also looking to invest in its wholly owned subsidiary Raneal Advanced Systems and fund its capital expenditure expenses (Rs 44.88 crore).

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DCX Systems is among the leading Indian players engaged in the manufacturing of electronic sub-systems and cable harnesses. The company started 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.