DCX Systems' IPO receives 8.8 times subscription applications on Day 2nd

2 Nov 2022 , 07:27 AM

On Tuesday, the second last day of the issue, DCX Systems’ IPO received applications for 8.86 times the subscription size. The institutional section received 1.96 times as much interest as HNI investor portion, which received 11 times as much as the retail portion. The IPO price set by the company ranges from Rs 197 to 207 per share. The Rs. 500 crore IPO consists of a Rs400 crore new issue and a Rs100 crore offer for sale. A total of 12 anchor investors, including BNP Paribas, Volrado Ventures, Theleme, HDFC Large & MidCap, and Motilal Oswal MF, received shares worth Rs 223 crore last week from the business.

The new issue’s proceeds will be used by DCX Systems to pay off obligations and meet its working capital needs. Additionally, it intends to pay for the capital expenses of its subsidiary, Raneal Advanced Systems. Electronic subsystems and cable harnesses are produced by DCX. The company’s goods are utilized in a variety of electronic warfare systems, including those for communications, sensors, surveillance, missiles, and armored military vehicles.

According to analysts, the outsourcing of the production of defense-related subcomponents to the private sector presents substantial prospects for businesses like DCX Systems. But its reliance on offset defense contracts and large working capital needs were highlighted as major issues. Four businesses want to generate more than Rs 4,100 crore through initial public offerings this week.