Bengaluru-based firm DCX Systems' initial public offering (IPO) will open on October 31 for subscription and close on November 2. The anchor investors will bid on October 28.
The firm said the basis of allotment of shares will take place on November 7 and credit of equity shares to the depository is slated to be held on November 10. The scrip will be listed on November 11 on exchanges.
The firm has cut its issue size to Rs 500 crore from Rs 600 crore earlier. The firm now plans to raise Rs 400 crore via the fresh issue and Rs 100 crore via an offer for sale (OFS) by its existing promoters and shareholders.
The OFS comprises up to Rs 50 crore each by NCBG Holdings Inc and VNG Technology Pvt Ltd.
The proceeds from the issue worth Rs 110 crore will be used to repay the debt of the firm. As of August 31, 2022, the firm has total debt of Rs 483.81 crore.
The firm will utilise Rs 160 crore for funding working capital requirements. It will also use Rs 44.88 crore for investment in its arm Rancal Advanced Systems Pvt Ltd to fund its capital expenditure expenses.
Edelweiss Financial Services Ltd, Axis Capital and Saffron Capital Advisors Pvt Ltd are the lead managers to the issue.
The firm is among the leading Indian players in the manufacturing of electronic sub-systems and cable harnesses in the defence and aerospace sectors. It is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and is also involved in kitting.
As of June 2022, its total order book stood at Rs 2,563.63 crore. The firm operates through its manufacturing facility located at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru. As of June 30, 2022, it had 26 customers in Israel, the United States, Korea and India, including certain Fortune 500 companies, multinational corporations and start-ups.
For the June quarter, the company reported a total income of Rs 220.25 crore versus Rs 128.69 crore a year ago. Net profit for the period stood at Rs 5.57 crore compared to Rs 3.35 crore last year.
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