DCX Systems Limited IPO (DCX Systems IPO)

DCX Systems IPO 2022
Upcoming DCX Systems IPO | New DCX Systems IPO

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.

DCX Systems IPO

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

Particulars31 Dec 202131 March 202131 Dec 202031 March 202031 March 2019
Total Revenue749.24683.24587.26465.22309.07
Total Expense705.64643.43545.34452.36301.76
Profit Before Tax43.6039.8041.9212.867.30
Profit After Tax33.1929.5528.299.744.58
Amount in ₹ Crore

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 
Issue Object

DCX Systems IPO Peer Comparison

S. No.Face ValueCompany NamePE
15Bharat Electronics Limited23.79
210Data Patterns (India) Limited63.02
310Paras Defence and Space Technologies Limited115.05
410Astra Microwave Products Limited64.19
510Centum Electronics Limited32.05

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 DateSeptember 2022
IPO Closing DateSeptember 2022
Issue TypeBook Built Issue IPO
Issue Size₹600 Cr
Fresh Issue
Face Value₹2 per equity share
IPO Price₹[] – ₹[]
Market Lot
Min Order
Listing AtBSE, NSE
RegisterLink Intime India Private Limited
QIB Shares OfferedNot more than 75% of the Net Offer
Retail Shares OfferedNot less than 15% of the Net Offer
NII (HNI) Shares OfferedNot less than 10% of the Net Offer

DCX Systems IPO – Date Schedule

IPO Open DateSeptember 2022
IPO Close DateSeptember 2022
Basis of Allotment DateSeptember 2022
Initiation of RefundsSeptember 2022
Credit of Shares to Demat AccountSeptember 2022
IPO Listing DateSeptember 2022

DCX Systems IPO – Lots Size & Price

ApplicationLotsSharesAmount ( Cut-Off)
Minimum
Maximum

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
Websitewww.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
Websitewww.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

DCX Systems IPO FAQs
What is DCX Systems IPO?

DCX Systems IPO is a main-board IPO. The issue is priced at ₹[] to ₹[] per equity share. The IPO is to be listed on BSE & NSE.
When DCX Systems IPO will open?

The IPO is to open on [] September 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 ₹600 crores.
What is DCX Systems IPO Price Band?

DCX Systems IPO Price Band is ₹[] to ₹[].
What is DCX Systems IPO Minimum and Maximum Lot Size?

The minimum bid is [] Shares with ₹[] amount while the maximum bid is [] shares with ₹[].
What is the DCX Systems IPO Allotment Date?

DCX Systems IPO allotment date is September 2022.
What is the DCX Systems IPO Listing Date?

DCX Systems IPO listing date is September 2022. The IPO is to list on BSE and NSE.
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