DCX Systems Ltd IPO

Upcoming

IPO Synopsis

DCX Systems, a leading player for the manufacture of electronic sub-systems and cable harnesses, has filed preliminary papers with capital markets regulator Sebi to raise up to Rs 600 crore through an initial public offering (IPO).
The public issue comprises fresh issue of equity shares, aggregating up to Rs 500 crore, and an offer for sale of equity shares to the tune of up to Rs 100 crore by promoters -- NCBG Holdings Inc and VNG Technology, according to the Draft Red Herring Prospec 
DCX Systems, a leading player for the manufacture of electronic sub-systems and cable harnesses, has filed preliminary papers with capital markets regulator Sebi to raise up to Rs 600 crore through an initial public offering (IPO).
The public issue comprises fresh issue of equity shares, aggregating up to Rs 500 crore, and an offer for sale of equity shares to the tune of up to Rs 100 crore by promoters -- NCBG Holdings Inc and VNG Technology, 
Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the issue.


Objective of the Issue
The net proceeds from the issue will be used for:
 
1. Debt payment, 
2. Funding working capital requirements, 
3. Investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and 
4. General corporate purposes

About DCX Systems Ltd

DCX Systems is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and are also involved in kitting. The firm is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in FY2021. It 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 defence market for manufacture of electronic sub-systems and cable and wire harness assemblies

The manufacturing facility located at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka

It has 26 customers in Israel, United States, Korea and India, including certain Fortune 500 companies, multinational corporations and start-ups. The company caters to a mix of domestic and international customers and key customers include Elta Systems Limited, Israel Aerospace Industries Limited – System Missiles and Space Division, Bharat Electronics Limited, Astra Rafael Comsys Private Limited, Alpha-Elsec 155 156 Defense and Aerospace Systems Private Limited, Alpha Design Technologies Private Limited, Astra Microwave Products Limited, Kalyani Rafael Advanced Systems Private Limited, SFO Technologies Private Limited and DCX-Chol Enterprises Inc

Profit and Loss

Balance Sheet

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 641.2 449.3 299.9
EBITDA 10.1 30.5 10.1
PAT 29.6 9.7 4.6
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 793.2 698.8 488.9
Share Capital 3.5 3.5 3.5
Total Borrowings 136.4 134.0 109.0
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 114.0 130.0 121.1
Net cash from / (used in) investing activities 21.1 8.4 6.7
Net cash flow from / (used in) financing activities -2.3 19.0 38.3
Net increase (decrease) in cash and cash equivalents 132.7 157.4 166.2


Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%
DCX Systems 683.24 4.22 6.68 NA 63.18%
Bharat Electronics Limited 14,233.65 8.62 45.45 23.79 19.00%
Data Patterns (India) Limited 226.55 10.71 40.04 63.02 26.70%
Paras Defence and Space Technologies Ltd 144.61 5.55 72.69 115.05 7.60%
Astra Microwave Products Ltd 651.77 3.33 64.51 64.19 5.20%
Centum Electronics Ltd 823.22 13.31 186.36 32.05

5.00%


Key Points

  • Strengths

    1. Among the preferred Indian Offset Partners for the defence and aerospace industry with global accreditations
    2. Technology enabled and scalable end-to-end capabilities
    3. Business model with visibility of cash flows and ability to mitigate operational and technology risk
    4. Strategically located in aerospace Special Economic Zone with an advanced and modern manufacturing facility
    5. Well-positioned to capitalize on industry tailwinds

  • Risks

    1. Business is dependent on the sale of our products and services to our key customer
    2. Any changes in offset defence policy or a decline or reprioritisation of funding in the Indian defence budget, or delays in the budget process as
    3. Significant shortages of, or delay or disruption in the supply of raw materials could affect our estimated costs, expenditures and timelines
    4. Any adverse changes in the conditions affecting the electronic subsystems market can adversely impact our business
    5. Unable to obtain furnished equipment required for testing and qualifying the products from the customers which may have a material adverse effect

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

The price band of the IPO yet to be announced

When does the DCX Systems IPO issue open and close?

The DCX Systems IPO opens on, and the closes on - yet to be announced

What is the size of DCX Systems IPO issue?

The fresh issue of equity shares, aggregating up to Rs 500 crore, and an offer for sale of equity shares to the tune of up to Rs 100 crore by promoters.

Who are the promoters/key personnels of DCX Systems?

DCX Systems is promoted by Dr. H.S. Raghavendra Rao, NCBG Holdings Inc. and VNG Technology Private Limited.

What is the allotment date of DCX Systems IPO?

The allotment date is set yet to be announced

What is the DCX Systems IPO’s listing date?

CX Systems IPO’s listing yet to be announced

Who are the book runners for DCX Systems IPO?

Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the issue.

What is the objective of the issue?

The proceeds will be used:
1. debt payment, 
2. funding working capital requirements, 
3. investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses
4. general corporate purposes 

How to apply for the DCX Systems IPO?

To apply for the IPO, follow the steps given below
1. Login to your 5paisa account and select the issue in the current IPO section
2. Enter the number of lots and price at which you wish to apply for
3. Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

You will receive a mandate notification to block funds in your UPI app

Open Demat Account