DCX Systems IPO review: Subscribe or avoid? Know Anil Singhvis recommendation

DCX Systems IPO Review By Anil Singhvi, Zee Business: DCX Systems (DCX) Initial Public Offering (IPO) opened for subscription today, October 31. The public subscription of Rs 400 crore initial share sale of DCX Systems will close on November 2. The Bengaluru-based company is one of the leading manufacturers of electronic sub-systems and cable harnesses in the country.

DCX Systems' IPO comprises a fresh issue of equity shares worth Rs 400 crore. Also, there's an offer for sale (OFS) of equity shares up to Rs 100 crore by promoters. It is to be noted that NCBG Holdings Inc and VNG Technology are promoters of the company. The company has cut the size of its fresh issue of equity shares to Rs 400 crore from Rs 500 crore planned earlier.

DCX Systems IPO: Should you subscribe?

According to Zee Business Managing Editor Anil Singhvi, investors can subscribe to the IPO for both listing gains as well as for long-term gains.

"The promoters of the company have a clean background. Also, the company is in the defence sector and this is why it has very strong potential. This is a small-size IPO and has an attractive valuation," Singhvi said.

However, he said that the company has very few customers. "The negative thing is that the company is working for only a few customers. Also, financial managements need to be improved," he added.

DCX Systems shares will list on NSE and BSE. DCX Systems shares listing date is November 11.