DCX Systems IPO: Issue subscribed 12-Times On Last Subscription Day

The DCX Systems IPO has received a good response from the market. The IPO issue has subscribed nearly 12-times so far on its last day of subscription.

Investors have responded favorably to Bengaluru-based DCX Systems’ initial public offering (IPO) so far on the final day of the tender process. 

On the first day of the initial share sale, which began on October 31, all available shares were purchased.

By 11.16 a.m. on Wednesday, bids for 17,12,57,616 shares, or 11.80 times the issue size of 1,45,11,146 shares, had been received for the Rs 500 crore offering. 

The non-institutional investor quota was subscribed 17.40 times, while retail individual investor quota was subscribed 35.49 times. 

The quantity set aside for approved institutional buyers (QIBs) received 1.83 times as much interest.

The price range for the IPO has been set by DCX Systems at Rs. 197-Rs. 207 per equity share. Investors may place a minimum bid of 72 equity shares and then bid in multiple sets of 72 equity shares.

Market participants reported that the current gray market premium (GMP) for the DCX Systems IPO is Rs 85. 

It suggests that the gray market anticipates the lender to list at roughly ₹292 (Rs 207 + Rs 85), which is more than 41% above the IPO’s upper band price of ₹207 per equity share.

One of the top manufacturers of cable harnesses and electrical subsystems in India is DCX Systems. 

It had 26 clients, including many Fortune 500 businesses, in India, Israel, the US, and Korea. With schemes like “Make in India,” “Atmanirbhar Bharat,” and others.

According to the business, eligible institutional investors would receive 75% of the issuance, followed by non-institutional investors with 15% and retail investors with the remaining 10%.

The firm intends to use the net proceeds from the new issue to invest in its fully-owned subsidiary Raneal Advanced Systems as well as to pay down debt and cover working capital needs.

The company’s main business is system integration, but it also produces a wide range of cables and wire connector assemblies and engages in kitting.

Financially speaking, DCX Systems’ revenue from operations increased from Rs 449 crore in fiscal 2020 to ₹ 1,102 crore in fiscal 2022 at a CAGR (Compounded Annual Growth Rate) of 56.64%.