DCX Systems Limited

About DCX Systems Ltd IPO From the government initiative of promoting domestic manufacturing to rising demand from foreign countries – multiple factors are driving India’s burgeoning defence industry. Against this backdrop, DCX Systems will be listing on the bourses soon. It is one of the leading Indian players for the manufacturing of electronic subsystems and cable harnesses in the defence and aerospace sector. It is engaged in system integration in areas of radar systems, sensors, electronic warfare, missiles, and communication systems. It also manufactures cables and wire harness assemblies for a variety of uses including communication systems, sensors and surveillance systems. Beside these two business verticals, it also supplies assembly ready kits of electronic and electro-mechanical parts and undertakes all aspects of procurement. Now, this company is launching the DCX Systems IPO. The DCX Systems IPO Ltd will be a combination of fresh issue and an offer for sale. The money raised through the fresh issue will be used for repaying debt, funding working capital requirements and investing in its subsidiary. Company Name DCX Systems Ltd Company Type Private Founder's Name Dr. H.S. Raghavendra Rao Company Established On 2011 DCX Systems IPO Opening Date 31 October 2022 DCX Systems IPO Closing Date 2 November 2022 DCX Systems IPO Allotment Status 7 November 2022 Credit of Shares to the Demat Account 10 November 2022 DCX Systems IPO Listing Date 11 November 2022 DCX Systems IPO Face Value ₹ 2 per share DCX Systems IPO Lot Size 72 shares DCX Systems IPO Issue Size ₹500 crore DCX Systems IPO to be Listed on BSE, NSE DCX Systems IPO Price band ₹197 – ₹207 per share Financial snapshot Particulars FY 20 FY 21 FY 22 Revenue ₹ 449.2 crore ₹ 641.1 crore ₹ 1102.2 crore Net Profit ₹ 9.7 crore ₹ 29.5 crore ₹ 65.6 crore Here’s a quick look at DCX Systems IPO’s strengths, weakness, opportunities and risks (SWOT analysis) Strengths and opportunities A rapidly growing company in India’s defence space. Its revenue has grown at a CAGR of 56% between FY20 and FY22 Had 26 customers in Israel, the US, Korea and India including Fortune 500 companies, multinational corporations and start-ups, as of June 2022 Has established long-term relationships with key customers. The average period of business relationship with top three customers is over five years A business model with visibility of cash flow. As of June 30, 2022, the order book comprised 42 orders worth ₹2,563.6 crore It exported $76 million worth of equipment, accounting for 4.7% of the overall defence exports from India in FY22 One of the largest Indian offset partners for the Israel-based IAI Group Weaknesses and threats Top three customers accounted for around 97% of the revenue in Q1FY23 96% of the revenue came from system integration vertical in the June quarter of FY23 Exposed to foreign currency fluctuations. Around 52% of the revenue came from exports in Q1FY23 Had negative cash flows from operating activities in the past Its total borrowings stood at ₹890 crore, as of August 2022. The debt-to-equity ratio was at 4x in June 2022 Any downgrade in its credit ratings could increase its borrowing costs DCX Systems IPO Details | DCX Systems IPO date The offer document filed by the company with the SEBI mentions that the DCX Systems IPO’s opening date – in other words, the DCX Systems IPO launch date – will be on 31 October 2022. The DCX Systems IPO closing date is 2 November 2022. After this, investors will be updated about the allotment status on 7 November 2022. Investors, who have been allotted shares, can expect them to be credited in their demat account on 10 November 2022. The DCX Systems IPO listing date is 11 November 2022. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. | DCX Systems IPO price band The entire IPO is a book-built issue. The DCX Systems IPO price band has been set between ₹197 and ₹207 per share. Interested investors can choose a price within this band to apply for the IPO. The DCX Systems IPO listing price will be determined on 11 November 2022. The listing price is the price at which the shares of a company make their debut on the stock exchanges. | DCX Systems IPO lot size The DCX Systems IPO details have been declared. The DCX Systems IPO lot size is set at 72 shares, and an investor can apply for a minimum of 1 lot. Individual investors applying under the retail category can apply for up to 13 lots (936 shares). Meanwhile, the DCX Systems IPO issue size is ₹500 crore. How to pre-apply for the DCX Systems IPO? You can pre-apply for the DCX Systems IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘DCX Systems IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the DCX Systems IPO? If you are interested in this investment opportunity but unsure how to apply for the DCX Systems IPO, here we are listing out the steps for you. Here’s a step-by-step guide on how to apply for the DCX Systems IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘DCX Systems IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the DCX Systems IPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to seven days after an IPO closes. This is also true in the case of the DCX Systems IPO. The DCX Systems IPO’s closing date is 31 October 2022. The DCX Systems IPO’s allotment date has been set seven days later, on 7 November 2022. Here’s a step-by-step guide on how to check the DCX Systems IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your allotment status will be mentioned Open a demat account with Upstox to apply for the DCX Systems IPO To apply for the DCX Systems IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Upstox – trading app to apply for the DCX Systems IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the DCX Systems IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.