DCX Systems Limited IPO – Review
DCX Systems Limited – among the leading Indian players for the “manufacture of electronic sub-systems and cable harnesses” is planning to raise INR 500 Cr via IPO [Fresh Issue 400 Cr + OFS 100 Cr]
DCX Systems Limited – Company Details
Started operations in the year 2011, DCX Systems Limited has been a preferred IOP (Indian Offset Partner) for foreign OEMs (original equipment manufacturers) for executing “aerospace and defence manufacturing projects”
DCX Systems Limited – Business
DCX Systems specializes in manufacturing cables, wire harness assemblies, and kitting.
They are a wide supplier and offer protective and reliable products to their customers.
As of June 30, 2022, the company had 26 customers in Israel, Korea, the United States, and India, including “Fortune 500 Companies”, multinational corporations, and start-ups.
The company’s client lists include domestic and international OEMs, private companies, and PSUs in India across different sectors, including defence, railways, and aerospace to space ventures.
Company Strengths
- Among the preferred IOP for the defence and aerospace industry with global accreditations
- Technology enabled and scalable end-to-end capabilities
- Business model with visibility of cash flows and ability to mitigate operational and technology risk
- Strategically located in “Aerospace Special Economic Zone” with an advanced and modern manufacturing facility
- Well-positioned to capitalize on industry tailwinds
- Experienced and qualified Promoters and senior management team
Strategies Ahead
- Strengthen system integration operations and further expand cable and wire harness assembly business
- Focus on adjacent industry verticals leading to expansion of customer base
- Strengthen relationships with our existing customers and expand customer base
- Penetrate into new geographies through an increase in exports
- Continue to improve operational efficiencies through economies of scale, supply chain rationalization, and effective resource planning
- Pursue inorganic growth through selective acquisitions
Promoters
- Dr. H.S. Raghavendra Rao,
- NCBG Holdings Inc.
- VNG Technology Private Limited
IPO DETAILS
Dates = 31 Oct 2022 to 02 Nov 2022
Face Value (FV) = INR 2
Issue Price / Floor Price = INR 197 to INR 207
Application per Share = INR 207
Minimum Investment Amount = INR 14904
Minimum Bid = 72 Shares
Maximum Shares for Retail = N.A.
FINANCIALS
Conclusion
Considering the company’s financial parameters, FinBlab recommends SUBSCRIBE ratings on DCX Systems Limited IPO
Read: Krishna Institute of Medical Sciences – Value Pick Stock OCTOBER 2022
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