SEBI approves DCX Systems Limited IPO
DCX Systems Limited, a leading Indian player for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2021, as per Frost & Sullivan, has received SEBI’s approval to raise Rs.600 crore through an Initial Public Offering (IPO)..
The Bengaluru-based Company had filed the draft red herring prospectus (DRHP) with SEBI in April this year, and it obtained an “observation” letter from SEBI on July 5, 2022, as per the update on SEBI website. In SEBI’s parlance, its observation implies its approval to float an IPO.
According to the DRHP, the initial Public Offering of DCX Systems comprises fresh issue of equity shares aggregating up to Rs. 500 crore and an offer for sale of equity shares aggregating up to Rs. 100 crore by promoters – NCBG Holdings Inc and VNG Technology.
The company proposes to utilise the net proceeds from the fresh issue towards Repayment/ prepayment, in full or part, of certain borrowings availed of by it; Funding working capital requirements; Investment in its wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses; and General Corporate purposes.
The Book Running Lead Managers to the offer are Edelweiss Financial Services Ltd, Axis Capital Ltd and Saffron Capital Advisors Pvt Ltd.
