DCX Systems offers draft papers with Sebi to raise up to Rs 600 crore via IPO

DCX Systems, a leading manufacturer of electronic subsystems and cable harnesses, has filed initial papers with capital markets regulator Sebi to raise up to Rs 600 crore through an initial public offering (IPO).

The public issue consists of a new issue of equity shares, totaling up to Rs 500 crore, and an offer to sell equity shares of up to Rs 100 crore by the promoters – NCBG Holdings Inc and VNG Technology, according to a draft Red Herring Prospectus (DRHP).

Besides, the company may explore pre-IPO offerings, which are up to Rs 50 crore. If this placement is completed, the amount collected will be reduced by the new version.

The company proposes to use the net proceeds from the new issue to pay off debt, fund working capital requirements, and invest in its wholly owned subsidiary Raneal Advanced Systems to fund capital expenditures and general corporate purposes.

The Bengaluru based company is primarily engaged in system integrator and manufacture of a comprehensive range of cable and wire assemblies, as well as engaged in fit-out.

DCX Systems revenue from operations grew at a compound annual growth rate of 46.22% from Rs.299.87 crore in FY 2019 to Rs.641.16 crore in FY 2021, and revenue from operations was Rs.728.23 crore in the nine months ended December 31, 2021. Request The company increased the book 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 lead book managers running this edition. It is proposed that the equity shares be listed on both stock exchanges, BSE and NSE.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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