DCX Systems Makes Blockbuster Stock Market Debut, Lists 38% Above IPO Price

Shares of DCX Systems made a blockbuster stock market debut on Friday. The stock opened for trading at Rs 286.25 on the BSE, marking an upside of 38 per cent from its initial public offering (IPO) price of Rs 207. On the National Stock Exchange (NSE), DCX Systems opened for trading at Rs 287, up 39 per cent from the IPO price.

The stock rose as much as 54 per cent to hit an intraday high of Rs 319.90 on the NSE but settled 49 per cent or Rs 101 higher at Rs 308.

DCX Systems shares were in very high demand during the three day share sale via IPO which concluded on November 2 as the issue was subscribed a whopping 70 times. The IPO saw keen interest from all class of investors as portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 84.32 times, shares set aside for non-institutional investors (NIIs) was subscribed 44 times and portion reserved for retail individual investors was subscribed 62 times.

75 per cent of issue was reserved for QIBs, 15 per cent for NIIs and 10 per cent for retail investors.

DCX Systems raised Rs 500 crore from the IPO which comprised of fresh issue of Rs 400 crore and an offer for sale worth Rs 100 crore from its existing investors.

The company will use the proceeds from fresh issue for repayment/ prepayment, in full or part, of certain borrowings availed of by the company, funding working capital requirements of the company, investment in its wholly owned subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses and for general corporate purposes.

DCX Systems manufactures electronic sub-systems and cable harnesses. The company commenced operations in 2011 and has been a preferred Indian Offset Partner for foreign original equipment manufacturers for executing aerospace and defence manufacturing projects.

In 2020, the company commissioned a new manufacturing facility at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka.

As of June 30, 2022, DCX Systems had 26 customers in Israel, the United States, Korea and India, including certain Fortune 500 companies, multinational corporations and start-ups. The company's customers include domestic and international OEMs, private companies and public sector undertakings in India across different sectors, ranging from defence and aerospace to space ventures and railways.