The price band has been fixed at ₹197 to ₹207 per share. The company on Friday said it has raised ₹225 crore from anchor investors days ahead of its initial share sale.
The initial share sale consists 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.
As per market observers, DCX Systems shares are commanding a premium (GMP) of ₹82 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.
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.
"At higher price band, DCX is demanding an EV/Sales multiple of 1.2x, which is lower than the peer average. Considering the favorable macros for the defence manufacturing sector and for the company, we feel the IPO is attractively priced," said Choice Broking.
“The company has delivered consistent financial performance. Their 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.
Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the IPO. Link Intime India Private Ltd is the registrar of the share sale.
