DCX Systems files draft papers to raise ₹ 600 crore by IPO

DCX-IPO
April 5, 2022

The DCX Systems IPO consists of a fresh issue of ₹ 500 crore and an offer for sale (OFS) of upto ₹ 100 crore by its existing shareholders and promoters.
DCX Systems has filed draft papers with SEBI to raise around ₹ 600 crore via an IPO.
The firm proposes to utilise ₹ 120 crore towards funding of its debt. As of 28 February 2022, the total borrowings of the company was at ₹ 451.51 crore.


NCBG Holdings Inc and VNG Technology Pvt Ltd will each sell shares worth ₹ 50 crore. Currently, both these promoters hold 44.32 percent stake each in the firm.
DCX Systems also plans to use ₹ 200 crore towards funding of its working capital requirement in the FY23. The firm plans to use ₹ 44.90 crore towards funding capital expenditure of its subsidiary Raneal Advanced Systems PVt Ltd for setting up a manufacturing facility of electronic manufacturing services (EMS) via Raneal Advanced Systems Pvt Ltd(RASPL).


The Company is the leading Indian player for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2021. It is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies and is also involved in kitting.
The Company operates through its manufacturing facility located at the Hi-Tech Defence and Aerospace Park SEZ in Bengaluru, Karnataka. Its facility is spread over an area of 30,000 square feet and is set up for complete in-house environmental and electrical testing and wire processing.   As of December, 2021, it had 26 customers in Israel, United States, Korea and India, including certain Fortune 500 companies, multinational corporations and start-ups.

About DCX Systems

DCX Cable Assemblies Pvt. Ltd. was set up in the year 2011 in partnership with DCX-Chol enterprises, USA to provide optimal solutions to the defence & Aerospace Sector.
DCX Cable Assemblies Pvt. Ltd. is an international leader and vertically integrated military, aerospace, design & Manufacturing company that specialises in providing integration and interconnect solutions for the most challenging packaging problems in the today’s defence industry.

Source: Money Control

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