DCX Systems, which commenced its operations in 2011, is among the leading Indian players in the manufacturing of electronic sub-systems and cable harnesses.
The company aims to raise Rs 500 crore via IPO, which includes issuance of fresh equity shares worth Rs 400 crore, whereas existing investors will sell shares worth Rs 100 crore via offer for sale (OFS).
NCBG Holdings and VNG Technology, who happen to be promoters of the company, are the entities offloading their stake through the offer for sale.
Bids can be made for a minimum of 72 Equity Shares and in multiples of 72 Equity Shares thereafter. The issue is open for subscription till Wednesday, November 2.
Net proceeds from the fresh issue will be utilised towards repayment/prepayment of certain borrowings, funding working capital requirement investment in its wholly owned subsidiary, Raneal Advanced Systems and general corporate purposes.
The Bengaluru-based company is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies, and are also involved in kitting.
DCX Systems’ revenue from operations grew at a CAGR of 56.64 per cent from Rs 449 crore in FY2020 to Rs 1,102 crore in FY2022.
The company’s order book has increased from Rs 1,941 crore as of March 31, 2020, to Rs 2,369 crore on March 31, 2022. As of June 30, 2022, DCX Systems had 26 customers across Israel, the United States, Korea and India.
The company has reserved 75 per cent of shares for the qualified institutional buyers, whereas non-institutional investors will get 15 per cent shares. Remaining 10 per cent from the block will be allocated to retail bidders.
, and Saffron Capital Advisors have been appointed as the book-running lead managers to the issue, whereas Link Intime India has been appointed as the registrar to the issue.