DCX Systems makes a strong debut, lists 38% higher from issue price

The stock got listed at Rs 287.00 apiece on the National Stock Exchange (NSE), thereby registering a gain of 38.65 per cent from its offer price of Rs 207.00, while on the BSE, it opened at Rs 286.25, up 38.29 per cent from the issue price.

Within the first few minutes of listing, the DCX Systems stock inched higher from its listing level. During the first 10 minutes of trade, the shares hit a low of Rs 286.25 on the BSE and Rs 287.00 on the BSE and a high of Rs 299.00 on the BSE and Rs 297.00 on the NSE.

At 10:10 am, the scrip was trading at Rs 290.70 on the BSE, up 40.43 per cent from the issue price while on NSE it was at Rs 290.95, up 40.56 per cent. The market capitalisation stood at Rs 2,809.82 crore, data from the BSE showed.

Over 1.22 crore shares of DCX Systems were traded so far on NSE while around 7.82 lakh shares have exchanged hands on the BSE, data from the respective stock exchange showed.

DCX Systems is engaged in the manufacturing of electronic sub-systems and cable harnesses in the defence and aerospace sector. It commenced operations in 2011 and has been a preferred Indian Offset Partner for foreign original equipment manufacturers for executing aerospace and defence manufacturing projects. As of June 30, 2022, it had 26 customers in Israel, the United States, Korea and India.

Commenting on the listing, Pravesh Gour, Senior Technical Analyst at Swastika Investmart, said, “The company’s strong listing can be attributed to unexciting investor subscription levels. As the company has been able to create long-term and deeply entrenched relationships with its clients due to its execution capability in terms of time and cost, ability to maintain confidentiality, and experienced management team. Nevertheless, there are concerns with the company like high dependence on key customers, the majority of the revenue from low margin built to print offset defense contracts, the regulated nature of the industry, high debt to equity, and high working capital requirements. Therefore, we advise investors to lock in listing gains and only aggressive investors should consider making a long-term commitment to the company. Those who applied for listing gains can maintain a stop loss of Rs 245.”

Speaking to indianexpress.com, Ravi Singh, vice president and head of research at Share India Securities said that investors who are looking for listing gains should book profits at 50 per cent of their position keeping a stop loss at the base IPO price of Rs 207 and a target of Rs 350.