DCX Systems makes strong debut

Shares of DCX Systems were trading at Rs 305 at 10:34 IST on the BSE, representing a premium of 47.34% compared with the issue price of Rs 207.

The scrip was listed at a price of Rs 286.25, at a premium of 38.29% as compared to the issue price.

So far, the stock has hit a high of 305.90 and a low of 286.25. On the BSE, over 12.20 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of DCX System was subscribed 69.79 times. The issue opened for bidding on 31 October 2022 and it closed on 2 November 2022. The price band of the IPO was fixed at Rs 197 to 207 per share.

The issue comprised of both fresh issue of equity shares by the company and offer for sale by promoter selling shareholders.

Of the net proceeds from the fresh issue, the company plans to utilize about Rs 110 crore for repayment of debt, Rs 160 crore for funding working capital requirements of the company, and Rs 44.883 crore for investment in Raneal Advanced Systems (RASPL), the wholly owned subsidiary of the company to fund its capital expenditure.

DCX Systems is one of leading Indian manufacture of electronic sub-systems and cable harnesses in defence and aerospace sector. Operations of the company are classified as system integration, cable and wire harness assemblies, and kitting.

In FY2022, about 85.3% of the revenue came from system integration, 12% from kitting and 2.7% from cable and wire harness assemblies.

The company reported a net profit of Rs 5.57 crore and net sales of Rs 213.25 crore in the quarter ended on 30 June 2022.

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