NEWS

DCX Systems Limited IPO : Company Financials and Other Information

DCX Systems initiated its business operation in 2011. DCX Systems Limited is a leader in the manufacturing of electronic sub-systems and Cable Harnesses. In 2020 the company recently started a new manufacturing facility at Bengaluru. DCV Systems has more than 26 customers offshore in the U.S, Korea, Israel etc. Also some of its clients are in the Fortune 500 Company List.

IPO DETAILS

DCX Systems Limited IPO is set to launch on 31st Oct., 2022. The subscription timeline extends till 2nd Nov., 2022. The size for the IPO is 500 Crore Rs.. Shares issued through Offer For Sale are worth 100 Crore Rs. Shares issued through Fresh Issue mode are worth 400 Crore Rs. The lot size is shares and the price range is 197 Rs. – 207 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 2 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	31st Oct., 2022
CLOSING DATE FOR IPO	2nd Nov., 2022
ISSUE TYPE	Book Built Issue
Face Value per share	2 Rs. per share
IPO price band	197 Rs. – 207 Rs.
LOT SIZE	72 shares
MINIMUM ORDER QUANTITY	72 shares
ISSUE SIZE	500 Crore Rs.
OFFER FOR SALE	100 Crore Rs.
FRESH ISSUE	400 Crore Rs
LISTING AT	NSE, BSE
LISTING DATE	11th Nov., 2022

IMPORTANT DATES

IPO OPENING DATE	31st Oct., 2022
CLOSING DATE FOR IPO	2nd Nov., 2022
IPO ALLOTMENT DATE	7th Nov., 2022
REFUNDS	9th Nov., 2022
DEMAT A/C CREDITED ON	10th Nov., 2022
IPO LISTING DATE	11th Nov., 2022

DCX Systems Limited IPO begins for subscription from 31st Oct., 2022. The IPO subscription would continue till 2nd Nov, 2022. The allotment status for the shareholders who applied would come on 7th Nov., 2022. The refunds for the ones who did not get allotment would be initiated on 9th Nov., 2022. The DEMAT accounts of shareholders would be credited on 10th Nov., 2022. The listing of the company would be accompanied on 11th Nov., 2022.

Lead Managers

The lead managers are :

Saffron Capital Advisors Private Limited
Edelweiss Financial Services Limited
Axis Capital Limited

The minimum lot size for the company is decided at 72 shares. This holding accounts to 14904 Rs.. The maximum lot size is decided at 936 shares. This amounts to 193752 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	72 shares	14904 Rs.
Maximum	936 shares	193752 Rs.

OBJECTIVES FOR THE IPO

For General corporate purposes.
To meet the future capital requirements.
For investments in the wholly owned subsidiary Raneal Advanced Systems Private Limited.

COMPANY FINANCIALS

Particularly (in Crore Rs.)	June 2020-21	March 2020-21	March 2019-20
ASSETS	763	793	699
Revenue	129	683	465
PAT	3	29.5	9.7

The assets of the company are not stable. The assets recorded in 2020 were 700 Crore Rs. The same increased to 793 Crore Rs in 2021 March. However they went down by 30 Crore Rs in 2021 June. This indicates that the company’s assets are not stable. On the other end the revenue generation is quite impressive. The company generated 465 crore Rs of revenue in 2020 which went up to 683 Crore Rs in 2021. The revenue generation till June 2021 was 129 Crore Rs which also indicates a stable revenu flow. The profit of the company is something which is very amazing.

The company made just 9.7 Crore Rs in 2020 which increased to 29.5 Crore Rs in 2021. This is a good jump in revenue. However one thing to notice is that the company is not generating enough profits that it should from the amount of asset investment or revenue generation. Hence one can think twice before investing into the company. With such low margins the company can have problems of capital in future very frequently.

PROS

The company has established a new manufacturing facility at Bengaluru in 2020.
DCX Systems is involved in dealing with some major Fortune 500 Companies. The company has 26 clients from Israel, Korea, U.S., India etc.