Manufacturing of electronic subsystems and wiring harnesses debuted at a 39% premium at Rs 287 over the issue price of Rs 207 on the National Stock Exchange (NSE). The stock was listed at Rs 286.25 on BSE.
However, the action in the counter continued even after listing as the stock jumped another 7% to Rs 305.90 on BSE to take overall gains to 48% from the price of ’emission.
However, analysts remain divided on DCX Systems’ post-listing strategy. Some of them suggest reserving profits for the company, in whole or in part, while others say to stay invested for the longer term.
Pravesh Gour, Principal Technical Analyst,
, worries about the company despite its meteoric start. He advised investors to lock in listing gains.
“Only aggressive investors should consider a long-term commitment to the business,” he added. “Those who requested signup gains can maintain a stop loss of Rs 245.”
Arafat Saiyed, Senior Research Analyst, Securities, said the company is quite strong and investors can make partial profits and hold the remaining part for the long term.
DCX Systems’ initial public offering opened for subscription between October 31 and November 2, with the company raising Rs 500 crore via its initial stake sale by offering shares in the range of Rs 197-207 each .
The issuance was globally subscribed 69.79 times, with qualified institutions quota getting subscription 84.32 times, while non-institutional bidders and retail shares were subscribed 43.97 times and 61.77 times, respectively.
Rajnath Yadav, Research Analyst, Choice Broking, believes this is a long-term game. It is therefore recommended that investors remain invested in the meter.
“With indigenization and other government policy measures, there is an increase in the activities of national entities that deal with aerospace and defense manufacturing space,” he added. .
DCX System is engaged in the field of system integration in the fields of defense radar systems, sensors, electronic warfare, missiles and communication systems.
In 2020, the company commissioned a new manufacturing facility in the SEZ at Hi-Tech Defense and Aerospace Park in Bengaluru, Karnataka.
Manoj Dalmia, founder and director of Proficient Equities advised investors to follow the enthusiasm for defense actors and government initiatives to boost this sector in the long term.
“With programs such as ‘Make in India’ and ‘Atmanirbhar Bharat’ coupled with other liberalization policies, the company is creating great prospects for it,” he said.
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