IPO: DCX Systems IPO will generate bumper earnings! There is tremendous response in the gray market, see details
In this issue, new shares worth Rs 400 crore will be issued.
The shares will be listed on both BSE and NSE.
Only 10% will be reserved for retail investors
New Delhi. Another opportunity for investors to earn from IPO is going to come after Diwali. The IPO of Bangalore-based company DCX Systems (DCX Systems IPO) will open on October 31. Investors will be able to place bids for the shares till November 1. The company is looking to raise Rs 500 crore through this. In this issue, new shares worth Rs 400 crore will be issued. At the same time, there will be an offer for sale (OFS) of 100 crores. In which the existing shareholders will sell some of their stake.
The shares will be listed on both BSE and NSE. DX manufactures electronic sub-systems and cable harnesses and is one of the leading companies in India in this field. The company’s promoters NCBG Holding and VNG Technology will sell their stake in the offer for sale. 75% of the IPO is reserved for institutional investors. At the same time, 15 per cent stake will be for non-institutional investors and retail investors will bid for only 10 per cent. The company has appointed Edelweiss Financial Services, Axis Capital and Safron Capital as the running lead managers of the IPO.
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What is the price band?
The company has fixed the price band of this IPO at Rs 197 to 207 per share. It is mandatory to buy one lot of shares. There are 72 shares in a lot. That is, the investor will have to bid at least Rs 14,904.
what is gmp
According to Mint, the gray market premium of DCX’s IPO is Rs 88. If the GMP is correct, then its shares will be listed around Rs 295 and investors will get huge profits. These shares can be listed in the stock market around November 11.
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Where will the money be used?
The proceeds from the IPO will be used by the company to pay off debt and meet working capital requirements. Apart from this, this money will be used to invest in subsidiary Ranial Advance Systems, meet capital expenditure and general corporate requirements.
The company has many clients not only in the country but also abroad. As of December 2021, the company had 26 clients in other countries including Israel, USA, Korea and India. These include some Fortune 500 companies as well. Apart from this, many multinational companies and startups are also customers of DX Systems. Talking about the income, the company had earned Rs 449 crore in 2019-20. In its next financial year i.e. 2021-22, the company’s income increased by 56.64 percent to Rs 1102 crore. The order book of the company as on March 2020 was Rs 1941 crores. It increased to Rs 2369 crore on 31 March 2022. Meaning the company had orders of Rs 2369 crore till March.
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FIRST PUBLISHED : October 26, 2022, 07:28 IST