Issue subscribed 69.79 times on final day led by QIBs and retail investors

DCX Systems IPO: The initial public offering (IPO) of cables and wire harness assemblies manufacturer DCX Systems, which got fully subscribed within hours of opening earlier this week, was subscribed 69.79 times on the final day, according to the data available on the BSE.

The Rs 500 crore offer received bids for over 101.27 crore (1,01,27,44,152) shares against the issue size of over 1.45 crore (1,45,11,146) shares, the data showed.

The shares which are to be allocated for the qualified institutional buyers (QIBs) was subscribed 84.32 times, while the portion for non institutional investors was subscribed 43.97 times and that of retail individual investors (RIIs) was subscribed 61.77 times, the data showed.

The DCX Systems IPO comprises a fresh issue of equity shares worth Rs 400 crore and an offer for sale (OFS) of equity shares up to Rs 100 crore by promoters NCBG Holdings Inc and VNG Technology.

The net proceeds from the fresh issue will be used for repayment/prepayment of certain borrowings, funding working capital requirements, investment in wholly owned subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses and for general corporate purposes.

The 3-day IPO opened for subscription on Monday, October 31, 2022, and concluded at 5 pm today. It has a price band of Rs 197-207 per share.

Ahead of the IPO, DCX Systems raised nearly Rs 225 crore (Rs 2,24,99,99,748) from 12 anchor investors.

DCX Systems is engaged in manufacturing of electronic sub-systems and cable harnesses in the defence and aerospace sector. It commenced operations in 2011 and has been a preferred Indian Offset Partner for foreign original equipment manufacturers for executing aerospace and defence manufacturing projects. As of June 30, 2022, it had 26 customers in Israel, United States, Korea and India.

Going ahead, investors will now look forward to the share allotment date of the issue. The finalisation of the basis of allotment for DCX Systems is expected to take place on Monday, November 7, 2022, as per the information provided in the red herring prospectus (RHP).

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