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The initial public offering of DCX Systems, manufacturer of cables and wire harness assemblies, received 69.79 times subscription on the final day on Wednesday. The IPO received bids for 101.27 crore shares against 1.45 crore shares on offer, according to NSE data.
The category for Qualified Institutional Buyers (QIBs) got subscribed 84.32 times, while the portion for Retail Individual Investors (RIIs) received 61.77 times subscription and non-institutional investors quota was subscribed 43.97 times.
As per market observers, DCX Systems shares are commanding a premium (GMP) of ₹74 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Friday, November 11, 2022. The finalisation of the share allotment of the DCX Systems IPO is expected to take place on Monday, November 7, 2022. Link Intime India Private Ltd is the registrar of the share sale.
The initial share sale consisted of issuance of fresh equity shares worth ₹400 crore. Apart from the fresh issue, the promoters and shareholders of the company will sell shares worth ₹100 crore via an offer for sale (OFS). NCBG Holdings and VNG Technology are the promoters of the company.
DCX Systems’ IPO opened for public subscription on Monday, October 31, 2022. Its price range was at ₹197-207 a share. On Friday, DCX Systems said it has raised ₹225 crore from anchor investors.
Incorporated in 2011, DCX Systems Limited (DSL) is among the leading Indian players in the manufacture of electronic sub-systems and cable harnesses. The company operates through their manufacturing facility located at the Hi-Tech Defense and Aerospace Park SEZ in Bengaluru, Karnataka.
The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary RaNeal Advanced Systems to fund its capital expenditure and general corporate purposes.
“The company’s revenue from operations grew at a 56.64% CAGR between FY20-22. The company has a strong order book of Rs. 2563 crs as on June, 2022. At the upper band, the issue is priced at PE multiple of around 30x (Post fresh issue) based on FY22 metrics, which looks reasonable. Defense stocks have remained in flavour recently due to government initiatives to push indigenous manufacturing and exports of defense equipments,” said Abhay Doshi, co-founder at UnlistedArena.
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(This story has not been checked by Kashmir Bulletin and is auto-generated from other sources)
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