India (Commonweath Union)_ Public subscription for the Rs 500 crore first share sale of cable and wire harness assembly maker DCX Systems would begin. The Red Herring Prospectus said that the Initial Public Offering (IPO) will end its three-day period on November 2 (RHP). From an initial intended amount of Rs 500 crore, the business has reduced the size of its new equity share offering to Rs 400 crore.
In addition to the additional issuance, NCBG Holdings Inc. and VNG Technology, the promoters of the IPO, are offering to sell equity shares for up to Rs 100 crore. The business plans to use the net proceeds from the new offering to pay down debt, meet working capital needs, invest in its fully owned subsidiary Raneal Advanced Systems to cover capital expenditure costs, and for other general corporate objectives.
The Bengaluru-based business’s main activities include system integration, the production of a wide range of cables and wire harness assemblies, and kitting. From fiscal year 2020 to fiscal year 2022, DCX Systems’ revenue from operations increased at a CAGR of 56.64%. According to the information provided in the red herring prospectus, the net proceeds from the new issue will be used for general corporate purposes, investment in a wholly owned subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses, and repayment/prepayment of some borrowings (RHP).
Qualified institutional buyers (QIBs) will get one-third of the issue size, followed by non-institutional investors (15%) and retail investors (the remaining 10%). In the defense and aerospace industries, DCX Systems, a business with headquarters in Bengaluru, manufactures electronic subsystems and cable harnesses. It started operating in 2011, and since then, global original equipment manufacturers have favored it as an Indian offset partner to carry out their manufacturing projects for aerospace and defense.
