The company is selling its shares in the range of Rs 197-200 apiece to raise Rs 500 crore via its initial stake sale.
According to the data from BSE, investors made bids for 17,07,08,256 equity shares or 11.76 times compared with 1,45,11,146 equity shares offered for subscription by 11.15 am on Wednesday.
The quota for retail bidders was subscribed 35.35 times, whereas the allocation for HNI investors fetched 17.36 times bids. The portion for institutional investors was subscribed 1.83 times till the given time.
The company has reserved 50% of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15% allocation. Retail bidders will get the remaining 35% allocation.
DCX Systems is involved in the manufacture of electronic sub-systems and cable harnesses. It has 26 customers in Israel, the United States, Korea and India as of June 30, 2022.
It is a preferred Indian offset partner (IOP) for foreign original equipment manufacturers (OEMs) to execute aerospace and defence manufacturing projects.
DCX Systems was commanding a premium of Rs 75-80 per share or 37-40% in the grey market over its given price band.
The majority of the brokerage firms have suggested subscribing to the issue as they believe the company has strong order books in the defence and aerospace industry with global accreditations, visibility of the cash flows and is well-position to capitalize on industry tailwinds.
At the higher price band, DCX is demanding an EV/Sales multiple of 1.2x, which is lower than the peer average, said Choice Broking in its pre-IPO note.
“Considering favourable macros for the defence manufacturing sector and for the company, we feel the IPO is attractively priced,” the brokerage said with a subscribe rating on the issue.
The company has reported consistent financial performance over the years and is technology-enabled with the capacity to scale further without incurring too much capital expenditure, said
. “Its order book is growing with repeat orders from existing customers.”
“There is a huge opportunity in offset business where the MOD has announced an offset backlog of $13.4 bn which needs to be completed in the next seven years, out of which 25% belongs to DCX category,” it added with a ‘subscribe for the long term’ rating.
, and Saffron Capital Advisors are the book-running lead managers to the issue, whereas Link Intime India is the registrar to the issue. Shares of the company will list on both BSE and NSE.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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