DCX Systems, a manufacturer of cables and wire harness assemblies, on Friday announced a price band of Rs 197 to Rs 207 per share for its Rs 500-crore initial public offering (IPO).
The initial share-sale will open for public subscription on October 31 and conclude on November 2, the company said. The company has cut the size of its fresh issue of equity shares to Rs 400 crore from Rs 500 crore planned earlier. Apart from the fresh issue, the IPO comprises an offer-for-sale of equity shares to the tune of up to Rs 100 crore by promoters — NCBG Holdings Inc and VNG Technology.
The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and general corporate purposes. According to the company, 75 per cent of the issue size has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter. The Bengaluru-based company is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies, and are also involved in kitting. DCX Systems’ revenue from operations grew at a CAGR of 56.64 per cent from Rs 449 crore in fiscal 2020 to Rs 1,102 crore in fiscal 2022.
The company’s order book has increased from Rs 1,941 crore as of March 31, 2020 to Rs 2,369 crore, as of March 31, 2022. Edelweiss Financial Services, Axis Capital and Saffron Capital Advisors are the book running lead managers to the issue. The equity shares are proposed to be listed on both the bourses, BSE and NSE.