InvestorQ : Can you give a subscription update for the IPO of DCX Systems that closed a couple of days back?
Aditi Sharma made post

Can you give a subscription update for the IPO of DCX Systems that closed a couple of days back?

Mahima Roy answered.
4 weeks ago

The IPO of DCX Systems Ltd was a mix of fresh issue and offer for sale with a total size of Rs500 crore. The demand across segments was fairly robust on the first two days and it showed very strong numbers by the close of the third day of the IPO. As of the close of the issue on Wednesday, DCX Systems was subscribed 69.8 times overall, with bulk of the demand coming from the QIB segment followed by the retail segment and HNI segment. Most of the QIB buying came in only on the last day, as is the norm. Against the 145.11 lakh shares on offer in the IPO, DCX Systems Ltd saw bids for 10,127.44 lakh shares or 69.8%.

Let me first talk about the QIB portion. A day prior to the IPO, there was an anchor placement of 1.09 crore shares at the upper price band of Rs.207. The total anchor placement was done to 12 anchor investors and had raised Rs.225 crore. QIB portion in the IPO (net of anchor allocation above) had a quota of 81.66 lakh shares. Against that, it got bids for a total of 6,885.50 lakh shares at the close of the last day of the IPO translating into a subscription ratio of 84.32X for the QIB portion. That shows a very strong QIB appetite for the IPO, which was already evident in the anchor itself.

Let me now move to the HNI / NII portion. The HNI portion got subscription for 1,674.14 lakh shares against the available quota of 38.07 lakh shares which translates into an HNI quota oversubscription of 43.97 times. HNI portion saw good response from Day-1 itself. Now, the HNI portion is further divided into 2 components. The bids the above Rs10 lakh category (B-HNIs) was subscribed about 45.44X while the Rs2 lakhs to Rs10 lakh bid category (S-HNIs) got subscribed 41.05X. The overall HNI subscription data that you see is an average of the above two categories.

Finally, let me turn to the retail portion of the DCX Systems IPO which has been seeing solid response from the first day of the IPO itself. The retail portion was subscribed 61.77 times at close, showing strong and robust retail appetite. Out of the 25.38 lakh shares on offer, valid bids were received for 1,567.80 lakh shares; including 1,372.92 lakh shares bid at cut-off price. It must be noted that retail allocation is 10% in this IPO priced in the band of (Rs.197-Rs.207). The issue closed on Wednesday.