DCX Systems Bags ₹1,250 Crore Contract from Larsen & Toubro

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DCX Systems secures a ₹1,250 crore contract from Larsen & Toubro for electronic modules, to be fulfilled in three years, as announced on July 1. Earlier this year, DCX Systems raised ₹500 crore via a QIP issue.

DCX Systems News Today

On Monday, July 1, DCX Systems, a leading manufacturer of cables and wire harness assemblies, disclosed a substantial contract win from Larsen & Toubro Ltd (L&T), one of India's largest conglomerates.

Contract Details and Scope

DCX Systems confirmed in a filing to the stock exchange that it has received a purchase order valued at ₹1,250 crore, excluding applicable taxes, from L&T. The contract involves the manufacturing and supply of electronic modules. The company is mandated to complete the project within a strict three-year timeline.

Explore:Dcx Systems Limited Share Price

Financial Background and QIP Issue

Earlier this year, in January, DCX Systems successfully raised ₹500 crore through a Qualified Institutional Placement (QIP). This involved issuing 1.46 crore shares to 43 qualified institutional buyers (QIBs) at a discounted price of ₹341 per share, which was 4.83% lower than the floor price of ₹358.30 per share.

The QIP issuance period ran from January 15 to January 19, aiming to raise equity capital up to ₹500 crore. Notable investors participating in the QIP included BoFa Securities, HDFC Mutual Fund, Bandhan, SBI General Insurance, and Copthall Mauritius Investment, with some acquiring more than 5% of the equity offering.

Equity Dilution and Ownership

The QIP issuance resulted in an equity dilution of 9.1% based on the base deal size and 15.1% considering the upsized deal size. As of the December shareholding pattern, promoters of DCX Systems currently maintain a 71% stake in the company.

DCX Systems continues to strengthen its market position through strategic contracts and financial manoeuvres, leveraging its expertise in electronic modules and wire harness assemblies.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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