DCX Systems IPO is hitting the market from today, its gray market premium is great
What is the work of the company and how is the health
DCX Systems is engaged in the business of Defense and Aerospace sectors. It manufactures electronic sub-systems and cable harnesses. It is also strong when it comes to the financial health of the company. Its operational revenue in the year 2019-20 was Rs 449 crore. After that, it increased to Rs 1102 crore in the year 2021-2022, growing at a CAGR of 56.64 per cent every year. If we talk about the order book of the company, then it is also great. Two years ago its order book was Rs 1941 crores, which has now increased to Rs 2369 crores.
what is price band
The price band of the company’s IPO has been fixed at Rs 197-207 per share. The lot size of the issue is 72 shares. This means that a minimum investment of Rs 14,904 will have to be made for one lot. Retail investors can invest up to a maximum of Rs 2 lakh.
issue size
DCX Systems had earlier expressed its intention to keep the issue size of its IPO at Rs 600 crore. However, it was later reduced to Rs 500 crore. The company is now planning to raise Rs 400 crore through fresh issue and Rs 100 crore through offer for sale (OFS) by its existing promoters and shareholders. The OFS consists of Rs 50 crore each by NCBG Holdings Inc and VNG Technology Pvt Ltd.
Use of money raised from IPO
The Rs 110 crore proceeds from the issue will be used to repay the company’s loan. The company has a total loan of Rs 483.81 crore as on August 31, 2022. The working capital of DCX Systems will be used to fund the requirements of Rs 160 crore. In addition, it will invest Rs 44.88 crore in its unit Rancal Advanced Systems Pvt Ltd to fund its capital expenditure.
Who is the lead manager of the issue
Lead managers of DCX Systems include Edelweiss Financial Services Ltd, Axis Capital and Saffron Capital Advisors Pvt Ltd.
What is its value in gray market
Its price is being quoted tremendously in the gray market. This morning a premium of Rs 71 was going on for its one share. Meaning that if the scope of huge profit. Its share can be listed on BSE and NSE next week on Friday, November 11, 2022.
