(ANI) The initial public offering of DCX Systems saw strong participation from investors as its issue was subscribed 2.11 times at the end of Day 1.
The three-day subscription window will close on Wednesday.
Market data showed that the shares reserved for retail investors were subscribed 8.7 times on Day 1.
Started in 2011, DCX Systems Ltd is among the leading Indian players for the manufacture of electronic sub-systems and cable harnesses in terms of manufacturing capability and revenue in Fiscal 2022 in the defence and aerospace sector.
The company's customers include domestic and international OEMs, and private companies and public sector undertakings in India across different sectors, ranging from defence and aerospace to space ventures and railways.
The company is bringing the public issue at a price band of ₹197-207 per share.
"Company being among the preferred Indian Offset Players for the defence and aerospace industry with global accreditations has technology-enabled and scalable end-to-end capabilities. Company's business model with visibility of cash flows and ability to mitigate operational and technology risk is strategically located in Special Aerospace Economic Zone with an advanced and modern manufacturing facility," said brokerage Hem Securities in a report.
While recommending "subscribe" ratings for the issue, Hem Securities said the company is well-positioned to capitalize on industry tailwinds.
The Bengaluru-headquartered firm is offering fresh shares worth ₹400 crore and is selling ₹100 crore shares through the offer-for-sale.
Allotment of shares will be done on November 7 and the listing of the stock on the exchanges is likely to take place on November 11, 2022.
For the record, the shares of defence stocks had been rallying recently as the government had taken the decision to increase the sourcing of defence raw materials locally under the Atmanirbhar initiative. There had been a lot of development and agreement between foreign companies and local companies in the field of drones, artificial intelligence and machine learning.
Stocks like Mazagon Dock Shipbuilders, Zen Technologies, BEL and Paras Defence had been strengthening for 2-3 months.