DCX Systems’ initial public offering (IPO) will open for public subscription on October 31, 2022, and conclude on November 2, 2022. The price band of the company has been fixed from Rs 197 to Rs 207 per share for its initial share sale.

DCX Systems shares are commanding a premium (GMP) of Rs 80 in the grey market on October 28 2022. The company’s shares are expected to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 11, 2022.

The fresh equity shares of the company are worth Rs 400 crore. Also, the promoters and shareholders of the company will sell shares worth Rs 100 crore via an offer for sale (OFS). Two promoters of DCX System are VNG Technology and NCBG Holdings.

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The Bengaluru-based company DCX Systems Ltd is primarily engaged in the system of manufacturing and integration of cables and wire harness assemblies and is also involved in knitting.

“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 Ltd, Data Patterns (India) ltd and Sundram Fasteners Ltd. Further, DSL has better revenue/PAT growth (CAGR of 57%/159% respectively) over two years, a healthy return on equity and the company also has a strong order book which provides visibility for the next two years. Considering all the positive factors, we believe this valuation is at reasonable levels,” said Angel One in an IPO note.