Rs 3,359 Crore Order Book: Defence Company Executed a Joint Venture Agreement with IAI’s ELTA Systems Ltd
The stock is up 40 per cent from its 52-week low of Rs 200 per share.
On Monday, shares of DCX Systems Ltd jumped 13 per cent to an intraday high of Rs 279.60 per share from its previous closing of Rs 247.35 with a spurt in volume by more than 2 times on BSE.
DCX Systems Limited has today, April 21, 2025, entered into a significant Joint Venture Agreement with IAI’s ELTA Systems Limited of Israel and its group companies. The primary objective of this collaboration is to establish a Joint Venture Company (JVC) within India, dedicated to the design, development, and manufacturing of advanced radar systems. These systems will encompass Airborne Maritime Radar, Fire Control Radar, and other radar technologies catering to both airborne and land-based applications, aligning with the "Make in India" initiative. The partnership leverages the complementary expertise and resources of both entities, building upon a long-standing association between DCX and ELTA, with the aim of maximising business opportunities for all stakeholders in the Indian defence sector.
The proposed shareholding structure of the new JVC will see ELTA Group holding a majority stake of 63 per cent, while DCX Systems will possess the remaining 37 per cent. The initial Board of Directors will consist of four members, with ELTA nominating three directors and DCX appointing one. This composition will evolve to five directors upon DCX's full investment, with ELTA having three and DCX having two. Notably, ELTA will nominate both the Chief Executive Officer and the Chief Financial Officer, subject to Board approval, and will also provide an exclusive technology license to the JVC for "Make in India" projects, excluding government-to-government and government-to-consumer contracts. The key terms of the agreement also address capital structure, reserved matters, management of the JVC, intellectual property, call options, and mechanisms for resolving potential deadlocks.
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DCX Systems Ltd., established in 2011, is a leading Indian company specialising in system integration, cable and wire harness manufacturing, and kitting. Renowned as a trusted Indian Offset Partner (IOP) for foreign original equipment manufacturers (OEMs), particularly in the aerospace and defence sectors, DCX Systems has forged strong partnerships with companies such as ELTA Systems Limited and Israel Aerospace Industries Limited (IAI Group). With a diverse customer base spanning Israel, the United States, Korea, and India, DCX Systems offers a wide range of products and services to clients in the defence industry, multinational corporations, and startups.
The company has a market cap of Rs 3,776.6 crore and as of December 31, 2024, has an order book of Rs 3,359 crore. The stock is up 40 per cent from its 52-week low of Rs 200 per share. Investors should keep an eye on this defence stock.
Disclaimer: The article is for informational purposes only and not investment advice.