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    DCX Systems IPO: Retail portion fully subscribed on Day 1

    Synopsis

    “In terms of valuations, the post-issue P/E works out to 30.5x FY22 EPS (at the upper end of the issue price band) which is low compared to its peers like Paras Defense & Space Technologies, Data Patterns (India) and Sundram Fasteners,” noted brokerage firm Angel One.

    DCX Systems IPO: Retail portion fully subscribed on Day 1ETMarkets.com
    The retail portion of the DCX Systems IPO, which opened on Monday, was fully subscribed within 90 minutes of the issue opening. As against 25.38 lakh shares on offer for the retail investor class, the category received bids for 44.74 lakh shares, translating into an oversubscription of 1.74 times.

    The non-institutional investor (NII) portion at 11:28 am was subscribed 0.24 times the total portion meant for the category.

    On an overall basis, as against the total offering of 1.45 crore shares, 54.58 lakh shares were bid for at the time of writing this report, resulting in 0.38 times subscription.

    The Rs 500 crore public issue of DCX Systems comprises a fresh issue of Rs 400 crore as well as an offer for sale (OFS) of Rs 100 crore by the company promoters.

    Majority of the brokerages have given thumbs-up to the issue with a ‘subscribe’ rating.

    “In terms of valuations, the post-issue P/E works out to 30.5x FY22 EPS (at the upper end of the issue price band) which is low compared to its peers like Paras Defense & Space Technologies, Data Patterns (India) and Sundram Fasteners,” noted brokerage firm Angel One.

    The company will use the proceeds from the issue towards debt payment, funding working capital requirements, and investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure and general corporate purposes.

    DCX Systems is engaged in the manufacture of sub-systems as well as cable harnesses.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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