DCX Systems is among India’s leading electronics subsystem and harness manufacturing players in terms of production capacity and revenue in FY 2021. It is primarily engaged in system integration and manufacturing a comprehensive range of cables and harness assemblies and is also involved in kitting. The company started operations in 2011 and has been India’s preferred offset partner (IOP) for foreign original equipment manufacturers (OEMs) to execute defense manufacturing projects.
It is a fast growing company in the Indian defense space and its revenue from operations grew by 46.22% between FY 2019 and FY 2021. DCX Systems is also one of India’s largest offset partners (IOP) for ELTA Systems Limited and Israel. Aerospace Industries Limited, System Missiles and Space Division (collectively “IAI Group”), Israel, for the Indian defense market for the manufacture of electronic subsystems and cable and wire harnesses. Over the years, it has expanded its production capabilities and grown its order book.
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.
Competitive Strengths
- Among the preferred Indian Offset Players for the defence and aerospace industry with global accreditations.
- Technology enabled and scalable end-to-end capabilities.
- Business model with visibility of cash flows and ability to mitigate operational and technology risk.
- Strategically located in Special Aerospace Economic Zone with an advanced and modern manufacturing facility.
- Well-positioned to capitalize on industry tailwinds.
- Track record of consistent financial performance.
- Experienced and qualified Promoters and senior management team supported by a committed employee base.
Is DCX Systems good for Investment?
DCX Systems Limited is a fast-growing entity. It depends on its key customers for a substantial portion of its revenue from operations.
They specialize in their manufacturing niche and undertake designing, manufacturing, and testing.
Their services include – Cable & Harness Assemblies, Fine wire cable assemblies, Flex flat cable assemblies, EMI shield cable Harness, Wired Enclosures, Backplane Assemblies, Diagnostic Test Sets, Conduit Assemblies, and Special/Customized connectors.
Sector-wise their operational strengths are admirable. They are serving the Defence sector and aerospace and offer services in industrial automation also.
Company Promoters
- Dr. H.S. Raghavendra Rao
- NCBG Holdings Inc.
- VNG Technology Private Limited
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax |
|---|---|---|---|
| 31 March 2019 | 309.07 | 301.76 | 4.58 |
| 31 March 2020 | 465.22 | 452.36 | 9.74 |
| 31 December 2020 | 587.26 | 545.34 | 28.29 |
| 31 March 2021 | 683.24 | 643.43 | 29.55 |
| 31 December 2021 | 749.24 | 705.64 | 33.19 |
| 31 March 2022 | 1124.33 | 1048.77 | 65.60 |
| 30 June 2022 | 220.25 | 213.78 | 5.56 |
Object Of The Issue
- Repayment/ prepayment, in full or part, of certain borrowings availed of by our Company.
- Funding working capital requirements of our Company.
- Investment in our wholly-owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses.
- General corporate purposes.
DCX Systems IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 5 | Bharat Electronics Limited | 23.79 |
| 2 | 10 | Data Patterns (India) Limited | 63.02 |
| 3 | 10 | Paras Defence and Space Technologies Limited | 115.05 |
| 4 | 10 | Astra Microwave Products Limited | 64.19 |
| 5 | 10 | Centum Electronics Limited | 32.05 |
DCX Systems IPO Strengths
- Among the preferred Indian Offset Partners for the defence and aerospace industry with global accreditations.
- Technology enabled and scalable end-to-end capabilities.
- Business model with visibility of cash flows and ability to mitigate operational and technology risk.
- Strategically located in aerospace Special Economic Zone with an advanced and modern manufacturing facility.
- Well-positioned to capitalize on industry tailwinds.
DCX Systems IPO Risks
- Business is dependent on the sale of our products and services to our key customer.
- Any changes in offset defence policy or a decline or reprioritisation of funding in the Indian defence budget, or delays in the budget process.
- Significant shortages of, or delay or disruption in the supply of raw materials could affect our estimated costs, expenditures and timelines.
- Any adverse changes in the conditions affecting the electronic subsystems market can adversely impact our business.
- Unable to obtain furnished equipment required for testing and qualifying the products from the customers which may have a material adverse effect.
DCX Systems IPO – Details
| IPO Opening Date | 31 October 2022 |
| IPO Closing Date | 02 November 2022 |
| Issue Type | Book Built Issue IPO |
| Issue Size | ₹500 Crore |
| Face Value | ₹2 per equity share |
| IPO Price | ₹197 – ₹207 |
| Market Lot | 72 Shares |
| Min Order | 72 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Link Intime India Private Limited |
| QIB Shares Offered | Not more than 75% of the Net Offer |
| Retail Shares Offered | Not less than 10% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
DCX Systems IPO – Date Schedule
| IPO Open Date | 31 October 2022 |
| IPO Close Date | 02 November 2022 |
| Basis of Allotment Date | 07 November 2022 |
| Initiation of Refunds | 09 November 2022 |
| Credit of Shares to Demat Account | 10 November 2022 |
| IPO Listing Date | 11 November 2022 |
DCX Systems IPO – Lots Size & Price
| Application | Lots | Shares | Amount ( Cut-Off) |
| Minimum | 1 | 72 | 14,904 |
| Maximum | 13 | 936 | 1,93,752 |
DCX Systems IPO Promoter Holding
| Pre Issue Share Holding | 98.20% |
| Post Issue Share Holding | 73.58% |
DCX Systems IPO Prospectus
Company Contact Information
| DCX Systems Limited Aerospace SEZ Sector, Plot Numbers 29,30 and 107, Hitech Defence and Aerospace Park, Kavadadasanahalli Village, Devanahalli Taluk, Bengaluru Rural – 562110 Karnataka, India Tel: +91 80 6711 9555 / 9535 E-mail: cs@dcxindia.com Website: www.dcxindia.com |
DCX Systems IPO Registrar
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West, Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: dcxsystems.ipo@linkintime.co.in Website: www.linkintime.co.in |
DCX Systems IPO Lead Manager(s)
| 1. Edelweiss Financial Services Limited 2. Saffron Capital Advisors Private Limited 3. Axis Capital Limited |
DCX Systems IPO FAQs
| What is DCX Systems IPO? DCX Systems IPO is a main-board IPO. The issue is priced at ₹197 to ₹207 per equity share. The IPO is to be listed on BSE & NSE. |
| When DCX Systems IPO will open? The IPO is to open on 31 October 2022 for QIB, NII, and Retail Investors. |
| What is DCX Systems IPO Investors Portion? The investors’ portion for QIB-75%, NII-15%, and Retail 10%. |
| How to Apply the DCX Systems IPO? You can apply DCX Systems IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the DCX Systems IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “DCX Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the DCX Systems IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “DCX Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the DCX Systems IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “DCX Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the DCX Systems IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “DCX Systems”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is DCX Systems IPO Size? DCX Systems IPO size is ₹500 Crore. |
| What is DCX Systems IPO Price Band? DCX Systems IPO Price Band is ₹197 to ₹207. |
| What is DCX Systems IPO Minimum and Maximum Lot Size? The minimum bid is 72 Shares with ₹14,904 amount while the maximum bid is 936 shares with ₹1,93,752. |
| What is the DCX Systems IPO Allotment Date? DCX Systems IPO allotment date is 07 November 2022. |
| What is the DCX Systems IPO Listing Date? DCX Systems IPO listing date is 11 November 2022. The IPO is to list on BSE and NSE. |
