DCX Systems is planning to raise Rs 600 crore from the market. The company has submitted IPO related papers (DRHP) with market regulator SEBI for this. In the Rs 600 crore IPO of the company, there will be fresh issue of 500 crores while 100 crores will be an offer for sale. The existing shareholders and promoters of the company will sell their stake through offer for sale.
NCBG Holdings and VNC Technology will sell their shares worth Rs 50 crore each through the offer for sale. At present, these promoters hold 44.32 per cent stake in the company.
The company will repay the debt with a part of the proceeds from the IPO
DCX Systems will use Rs 120 crore from the IPO to pay off the debt. It is worth noting that as of 28 February 2022, the total debt of the company was Rs 451.51 crore. Along with this, out of the proceeds of the IPO, Rs 200 crore will be used to meet its operating capital requirements in FY 2023. At the same time, the remaining Rs 44.90 crore will be used for the expansion of the company’s subsidiary, Raneal Advanced Systems Private Limited. Raneal Advanced Systems is going to set up an electronic manufacturing services unit.
Bankers of ipo
Edelweiss Financial Services Limited, Axis Capital Limited and Saffron Capital Advisors Private Limited are the Book Running Lead Managers of this IPO.
What does DCX Systems do?
The company is one of the leading manufacturers of electronic sub-systems and cable harnesses in India. The company primarily manufactures a wide range of System Integration and Cables & Wire Harness Assemblies. The company is located at Hi-Tech Defense and Aerospace Park SEZ in Bengaluru where its production unit is located. This plant is spread over 30,000 square feet. The facility of environmental and electrical testing is available in its plant.
The company had 26 clients in countries like Israel, America, Korea and India as of December 2021. Some of these customers are included in Fortune 500 companies. As of 28 February 2022, the company had orders worth Rs 2499.30 crore. The company’s income in the 9 months till December 2021 was Rs 728.23 crore as compared to Rs 548.49 crore in the same period last year. During this period, the company had a profit of Rs 33.20 crore, while in the same period last year, the company’s profit was Rs 28.29 crore.
