Issue opens today, subscribe or leave the issue? Get Anil Singhvi’s opinion


DCX Systems IPO: The initial public offering (IPO) of DCX Systems Ltd in the defense and aerospace sectors will be open for subscription today (October 31, 2022). The question will be closed on November 2. The company has raised Rs 225 crore through Anchor Book. DCX Systems, a Bengaluru-based manufacturer of electronic subsystems and cable harnesses, has a price range of Rs 197-207 per share. The lot size of the issue is 72 shares. A minimum investment of Rs 14,904 must be made for one lot.

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Anil Singhvi, managing editor of Zee Business, recommends investing in DCX Systems’ smaller IPO at a lower price. According to him, the image of the promoter of the company is clear. The company’s order book is strong and growth prospects are good. DCX Systems valuations are attractive.

Anil Singhvi said that the company also has negative points. The company trusts only a few customers more. There is no consistency in financial data.

issue size

The firm has reduced the issue size to Rs 500 crore from Rs 600 crore previously. The company will now raise Rs 400 crore through a new issue and Rs 100 crore through an offer of sale (OFS) from its existing promoters and shareholders. OFS includes Rs 50 crore each from NCBG Holdings Inc and VNG Technology Pvt Ltd.

Business DCM Systems

DCX Systems is the leading manufacturer of electronic subsystems and cable assemblies in the country. In 2020, the company opened a new factory in Bangalore, Karnataka. The company has 26 clients in India, Israel, USA and Korea. These clients also include Fortune 500 companies. Total revenue in FY 22 was Rs 683.24 crore and profit was Rs 128.69 crore.

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When will the IPO listing be?

The placement of shares will take place on 7 November. The refund will start from November 9, and the shares will be credited to the demo account until November 10. The market expects DCM Systems’ share could be on the NSE and BSE on November 11th. DCM Systems will use the IPO proceeds for debt repayment, working capital and other general corporate purposes.


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