DCX Systems IPO Analysis @ Chanakyanipothi.com, India`s Oldest & most Trusted Investment Blog. Operational since 8th December 1999, we are the Only Investment Platform in India, which has successfully completed 22 Years

DCX Systems IPO listed at Rs. 287.

DCX Systems IPO Listing Estimate: The business of the company falls in Defense category and the sector at present enjoys strong investor fancy. The IPO has received impressive oversubscription and also has retained grey market fancy till date. We expect the shares to get listed at around Rs. 290 and during the first trading session, the scrip is expected to touch Rs. 320. Since the market is passing through liquidity crunch, we expect severe selling pressure on listing, which can affect the uptrend at this counter for first few sessions. (Listing on 11 Nov 2022)

IPO guidance, you will love to study: Click

DCX Systems IPO Subscription Status
The IPO has received impressive response until now. The retail portion is oversubscribed by 60 times, which a good sign. Overall subscription is 69 times at the 4.00 pm on last day.
# On 2 November 2022 @ 5.00 pm
QIB        :     8165969     Shares,  84.32T
Big NII   :     2538070     Shares,  45.44T
SmallNII:     1269036      Shares,  41.05T
RII         :      2538037     Shares,  61.77T
Total      :     145,11,146  Shares, 69.79T

DCX Systems IPO Grey Market News Today #
Observation: Our reports from the grey market suggest, this small IPO will retain solid fancy.
for latest updates of Grey Market, Click  

DCX Systems IPO Company Details
DCX Systems is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2021.It is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and is also involved in kitting. The company commenced operations in 2011 and has been a preferred Indian Offset Partner (“IOP”) for foreign original equipment manufacturers (“OEMs”) for executing defense manufacturing projects. It is a rapidly growing company in the Indian defense space and
its revenue from operations have grown at a CAGR of 46.22% between Fiscal 2019 and Fiscal 2021 DCX Systems is also one of the largest Indian Offset Partner (“IOP”) for ELTA Systems Limited and Israel Aerospace Industries Limited, System Missiles and Space Division (together, the “IAI Group”), Israel, for the Indian defense market for manufacture of electronic sub-systems and cable and wire harness assemblies. Over the years, it has expanded its manufacturing capabilities and grown its order book.

The growing Indian landscape for defense and aerospace serves as a key opportunity for the Company. The Indian aerospace and defense sector is poised to attain a value of USD 70 billion by 2030. Recent initiatives like increase in foreign direct investment (“FDI”) in the Indian defense sector from the current 49% to 74% under the automatic route is anticipated to be a key driver and growth opportunity for the market. The Defense Research and Development Organization has announced the indigenous development of roughly 108 systems and sub-systems which is expected to generate demand for cables and connectors across the Indian defense environment. The Indian government has also banned approximately 101 items within the defense-based imports segment. These initiatives are expected to boost indigenous manufacturing within India. The instating of defense industry corridors across Uttar Pradesh and Tamil Nadu is also poised to improve the market growth dynamics by
broadening the opportunities offered to the private sector. All of these in turn, serve as an
opportunity for DCX to capitalize on the expected growth in this space
For more information, click www.dcxindia.com

The Promoters of DCX Systems
Dr. H. S. Raghvendra Rao, NCBG Holdings Inc. & VNG Technology Pvt ltd

DCX Systems IPO Main Objects
The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Promoter Selling Shareholders.
The Company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects:
1. Repayment/ prepayment, in full or part, of certain borrowings availed of by the Company.
2. Funding working capital requirements of the Company.
3. Investment in its wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses.

DCX Systems IPO Details
IPO opens on 31 October 2022
IPO closes on 2 November 2022
Issue Type: Book Built Issue IPO
Issue: up to 28985507 Shares /Rs 600 Crore
* Fresh Issue of 24154589 Sh/ 500 Cr
* Offer for Sale Up to 4830918 Sh/ Rs. 100 Cr

Face Value per share: Rs. 2
DCX Systems IPO Price Band Per Equity Share: Rs. 197-207
DCX Systems IPO Retail Lot Size 72 Shares
DCX Systems IPO Listing will at BSE, NSE

Shares offered to
QIB (75%) 21739130 Shares = Rs 450 Cr
NII (15%) 4347826 Shares = Rs 90 Cr
RII (10%) 2898551 Shares = Rs 60 Cr
Lot size: 72 Shares = 40257 Forms

How can you apply?
Retail (Min)             72 Shares, Rs. 14904
Retail (Max)          936 Shares, Rs. 193752
Small HNI (Min) 1008 Shares, Rs. 208656
Big HNI (Min)     4896 Shares, Rs. 1013,472

DCX Systems IPO Tentative timetable
Allotment on 7 November 2022
Unblocking of ASBA 9November 2022
Credit to Demat Accounts 10 November 2022
Listing on 11 November 2022

DCX Systems IPO Financial & Analytical Ratios
Earnings per Share 2019-20 Rs 1.39
Earnings per Share 2020-21, Rs 4.22
Earnings per Share 2021-22 Rs 9.19
Return on Net Worth: 19-20 56.75 %
Return on Net Worth: 20-21: 63.18%
Return on Net Worth: 20-21: 55.79 %
Equity Shares prior to the IPO: 77,400,000 Shares
Book Value of the Share as on 31.3.2022 Rs 15.92
Ratio Analysis
Upper Price Band/last EPS: 22.52
Upper offer price/Book Value Ratio: 13

DCX Systems IPO Peer Comparison:
(PE Ratios of peer companies are as per RHP)
DCX Systems PE Multiple @ Upper price: 22.52
Bharat Electronics @ PE Multiple of 32.36
Data Patterns (India) @ PE Multiple of 61.56
Paras Defense @ PE Multiple of 84.69
Astra Microwave @ PE Multiple of 73.15
Centum Electronics @ PE Multiple of N.A.

DCX Systems IPO Lead Managers 
Edelweiss Financial Services, Axis Securities ltd, Saffron Capital Advisors,
Registrar to DCX Systems IPO
Linkin time India Pvt Ltd

Registered Office of DCX Systems
Aerospace SEZ Sector, Plot Numbers 29,30 and 107, Hitech Defense and Aerospace Park, Kavadadasana halli Village, Devanahalli Taluk, Bengaluru Rural – 562110 Karnataka, India
Company Secretary & Compliance Officer: Nagaraj R Dhavaskar

# This is only coverage of News related to Grey Market. We do not deal in grey market premium, nor we recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.

DCX Systems IPO Subscription Status
# Anchor Investors Subscription
X
# On 16 September 2022 @ 5.00 pm
QIB        :   (?) Shares, (?) T
Big NII   :    (?) Shares, (?)T
Small NI:    (?) Shares, (?)T
RII         :    (?) Shares, (?)T
Empl     :    (?) Shares, (?)T
Total      :   (?) Shares, (?)T

For Guidance of DCX Systems IPO, Click https://chanakyanipothi.com/category/guidance-ipos-rights-offers/