DCX Systems IPO Subscription Status Day 1: Issue fully booked on first day of offer; retail investors queue most

DCX Systems IPO: The initial public offering (IPO) of DCX Systems has been fully subscribed on the first day of the offer. At around 3:30 PM on Monday, October 31, 2022, the issue was booked over 1.5 times as per the data available on the exchanges. The subscription will be active till Wednesday, November 2, 2022.

As many as 2,22,66,576 shares were bid against 1,45,11,146 equity shares offered in IPO. The retail investors' quota queued most for subscription, almost 7 times, followed by the non-institutional investors' category bid over 1 time and Qualified Institutional Buyers (QIBs) are yet to start.

The company has cut the size of its fresh issue of equity shares to Rs 400 crore from Rs 500 crore planned earlier and set a price band of Rs 197 to Rs 207 per share. Investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter.

Also Read: DCX Systems IPO review: Subscribe or avoid? Know Anil Singhvi's recommendation

DCX Systems has also raised Rs 225 crore from anchor investors days ahead of its initial public offering (IPO) on Friday. It has decided to allocate over 1.08 crore equity shares to anchor investors at Rs 207 apiece, aggregating the transaction size to Rs 225 crore, as per the circular uploaded on BSE.

Zee Business Managing Editor Anil Singhvi in his recommendation said that the investors can subscribe to the IPO of DCX Systems, which is one of the leading manufacturers of electronic sub-systems and cable harnesses in the country, for both listing as well as for long-term gains.

While citing rationale behind advising to participate in IPO, Singhvi added, “The promoters of the DCX Systems have a clean background. This is a small-size IPO and has an attractive valuation. Besides, the company is into defence sector, which is lucrative as well as has very strong potential.”

DCX Systems 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 and general corporate purposes.