DCX Systems had fixed the IPO price at ₹207, upper end of the price band at ₹197-207 per equity share.
The stock opened at ₹286.25 and hit a high of ₹319.75; on the NSE, DCX Systems closed 48.48 per cent higher at ₹307.35, after opening at ₹287.
The IPO saw an overwhelming response from all category of investors with the issue subscribing nearly 70 times.
The quota reserved for non-institutional investors was subscribed 43.97 times while that of retail individual investors by 61.77 times. The portion reserved for qualified institutional buyers (QIBs) was subscribed 84.32 times.
Ravi Singhal, CEO, GCL, said it is a good defence company with promoters having required technology backgrounds. It has an excellent order book, he said, adding: “only the financial management is a negative. If it can overcome this issue, the stock could become a multibagger.”
From the fresh issue, the company plans to utilise ₹110 crore for the prepayment/repayment of debt; ₹160 crore to fund working capital requirements; and another ₹44.9 crore for investment in a wholly-owned subsidiary, Raneal Advanced Systems, to fund its capital expenditure expenses.
Ahead of the issue on Friday, the company raised ₹225 crore from anchor investors, who included marquee investors such as BNP Paribas, Volrado Venture Partners, Theleme, HDFC Large & Midcap Fund, Motilal Oswal Midcap Fund, Quantum, Resonance and Cohesion.
The company is engaged in systems integration and manufacture of an array of cables and wire harness assemblies, and is also involved in kitting.