DCX Systems has filed preliminary papers with capital markets regulator SEBI.
New Delhi:
DCX Systems, a leading player for the manufacture of electronic sub-systems and cable harnesses, has filed preliminary papers with capital markets regulator SEBI to raise up to Rs 600 crore through an initial public offering (IPO).
The public issue comprises fresh issue of equity shares, aggregating up to Rs 500 crore, and an offer for sale of equity shares to the tune of up to Rs 100 crore by promoters — NCBG Holdings Inc and VNG Technology, according to the Draft Red Herring Prospectus (DRHP).
Besides, the company may explore pre-IPO placement, aggregating up to Rs 50 crore. If such placement is completed, the amount raised through the fresh issue will be reduced.
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.
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 46.22 per cent from Rs 299.87 crore in fiscal 2019 to Rs 641.16 crore in fiscal 2021, and revenue from operations was at Rs 728.23 crore in nine months ended December 31, 2021. The company’s order book has increased from Rs 1,042.30 crore as of March 31, 2019 to Rs 2,855.01 crore as of March 31, 2021.
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.
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