DCX Systems secures ₹1,250 Crore order from Larsen & Toubro

2 Jul 2024 , 11:13 AM

DCX Systems, a manufacturer of cables and wire harness assemblies, announced on Monday (July 1) that it has acquired a large contract from Larsen & Toubro Ltd, India.

Following this development, the company’s counter touched a new 52-week high of ₹440.

The purchase order, worth ₹1,250 Crore with taxes, covers the production and supply of electronic modules. According to the corporation, the order must be executed within three years.

DCX Systems funded ₹500 Crore in January by offering 1.46 million shares to 43 qualified institutional buyers (QIBs) at a price of ₹341 per share, a 4.83% discount to the floor price of ₹358.30.

DCX Systems sought to raise up to ₹500 Crore in equity capital through an issue that started on 15 January and ended on 19 January. Investors who have received more than 5% of the stock offering in the QIP issuance include BoFa Securities, HDFC Mutual Fund, Bandhan, SBI General Insurance, and Copthall Mauritius Investment.

Sources stated that the QIP offering is projected to result in an equity dilution of 9.1% on the base deal size and 15.1% on the upsized deal size. DCX Systems’ promoters currently own 71% of the company, according to the shareholding pattern from December.

DCX Systems specialises in system integration, manufacturing a wide range of cables and wire harness assemblies, as well as kitting. The company started operations in 2011 and have been a preferred Indian offset partner (IOP) for foreign original equipment manufacturers (OEMs) in completing aerospace and defence manufacturing projects.

At around 11.04 AM, DCX Systems was trading 11.69% higher at ₹423.75, against the previous close of ₹379.40 on NSE.

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