The initial public offering (IPO) by DCX Systems is set to hit the capital market on October 31, 2022. The company is aiming to raise Rs 500 crore through the public offer which comprises a fresh issue aggregating up to Rs 400 crore and an offer for sale of up to Rs 100 crore.
Price Band
DCX Systems has fixed a price band of Rs 197-Rs 207 per equity share for the forthcoming IPO. Retail investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter.
Objective of the issue
The company proposes to utilise the net proceeds from fresh issue towards repayment/ prepayment of certain borrowings availed of by the company (Rs 110 crore), funding working capital requirements of the company (Rs 160 crore), investment in its wholly owned subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses (Rs 44.88 crore) and for general corporate purposes.
Also Read | Tracxn Tech IPO listing: Stock debuts at Rs 84.50, 6% premium over issue price
Listing
The equity shares of the company are proposed to be listed on BSE and NSE.
BRLMs
Edelweiss Financial Services Limited, Axis Capital Limited and Saffron Capital Advisors Private Limited are the book-running lead managers (BRLMs). The public issue will close on November 2.
Business background
The Bengaluru-based company is primarily engaged in system integration and manufacturing an array of cables and wire harness assemblies and is also involved in kitting. Its revenue from operations increased at a compounded annual growth rate of 56.64 per cent to Rs 1,102 crore in the financial year 2022 from Rs 449 crore in FY20.
Also Read | Nykaa shares hit fresh low, inch closer to IPO issue price