DCX Systems files for ₹600 crore IPO. Details inside

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DCX Systems Limited, a leading Indian player for the manufacture of electronic sub-systems and cable harnesses, has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise 600 crore through an initial share sale.

The initial public offering (IPO) of the Bengaluru-based firm comprises of fresh issue of equity shares aggregating up to 500 crore and an offer for sale (OFS) of equity shares aggregating up to 100 crore by the selling shareholders.

The company proposes to utilise the net proceeds from the fresh issue towards repayment/prepayment of certain borrowings availed of by the company, funding working capital requirements, investment in its wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses, and general corporate purposes.

DCX Systems is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and are also involved in kitting. Its revenue from operations grew at a CAGR of 46.22% from 299 crore in Fiscal 2019 to 641 crore in Fiscal 2021, and was 728 crore in the nine months ended December 31, 2021, as per the DRHP.

The company’s order book has increased from 1,042 crore, as of March 31, 2019 to 2,855 crore, as of March 31, 2021. As of February 28, 2022, DCX Systems order book was 2,499 crore to be executed in the Fiscal 2023 and Fiscal 2024.

The Book Running Lead Managers to the offer are Edelweiss Financial Services Ltd, Axis Capital Ltd and Saffron Capital Advisors Pvt Ltd. The equity shares are proposed to be listed on stock exchanges BSE and NSE.

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