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DCX Systems Limited files DRHP with SEBI for Rs. 600 crore IPO


DCX Systems Limited files DRHP with SEBI for Rs. 600 crore IPO


DCX Systems Limited, a rapidly growing company in the Indian defence space and a leading Indian player for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2021, as per the Frost & Sullivan Report, has filed a draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise Rs. 600 crore through an initial public offering (IPO).


The Initial Public Offering of Bengaluru-based DCX Systems comprises of fresh issue of equity shares aggregating up to Rs. 500 crore and an offer for sale of equity shares aggregating up to Rs. 100 crore by the promoter selling shareholders.


It proposes to utilise the net proceeds from the fresh issue towards Repayment/ prepayment, in full or part, 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.


The offer for sale of equity shares shall comprise aggregating upto Rs. 50 crore by NCBG Holdings Inc and aggregating upto Rs. 50 crore by VNG Technology Private Limited.


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 Rs. 299.87 crore in Fiscal 2019 to Rs. 641.16 crore in Fiscal 2021, and was Rs. 728.23 crore in the nine months ended December 31, 2021.


Company’s order book has increased from Rs. 1042.30 crore, as of March 31, 2019 to Rs. 2855.01 crore, as of March 31, 2021. As of February 28, 2022, DCX Systems order book was Rs. 2499.29 crore to be executed in the Fiscal 2023 and Fiscal 2024.


DCX Systems commenced operations in 2011 and has been a preferred Indian Offset Partner (IOP) for foreign original equipment manufacturers (OEMs) for executing defence manufacturing projects. Its key customers include Elta Systems Limited, Israel Aerospace Industries Limited – System Missiles and Space Division, Bharat Electronics Limited, Astra Rafael Comsys Private Limited, Alpha-Elsec Defense and Aerospace Systems Private Limited, Alpha Design Technologies Private Limited, Astra Microwave Products Limited, Kalyani Rafael Advanced Systems Private Limited, SFO Technologies Private Limited and DCX-Chol Enterprises Inc.


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 BSE and NSE.

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