DCX Systems Share Price in Focus on JV with ELTA Systems

DCX Systems Limited signed a Joint Venture Agreement on April 21, 2025, with ELTA Systems Ltd, a subsidiary of Israel Aerospace Industries (IAI), along with its group companies. The agreement covers the formation of a joint venture company (JVC) in India.

As of 12:52 PM on April 22, DCX Systems share price was trading at ₹273.25, down 0.22% for the day, 5.37% over the past six months, and 12.63% over the past year.

Scope of the Joint Venture

The newly formed JVC will work on the development and manufacturing of radar systems. This includes airborne maritime radar systems, fire control radar systems, and other radar technologies for both airborne and land-based applications. The project will be executed under the “Make in India” initiative.

Ownership Structure

DCX Systems will hold a 37% equity stake in the JVC, while the ELTA group will hold the remaining 63%. As of the date of execution, DCX has no shareholding in ELTA or its group companies.

Board Composition

Initially, the JVC board will consist of four directors, three appointed by ELTA and one by DCX. Upon full investment by DCX, the board will expand to five members, including two from DCX and three from ELTA. The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) will be nominated by ELTA, subject to board approval.

Read more: DCX Systems Secures Major Purchase Orders Worth ₹24.51 Crores.

Licensing and Terms

As per the filing, ELTA will provide an exclusive license for its radar technology to JVC, specifically for “Make in India” projects. The licence excludes government-to-government (G2G) and government-to-customer (G2C) engagements. Other terms include provisions for capital structure, board rights, intellectual property, reserved matters, and conflict resolution through mechanisms like a call option.

Transaction Nature and Compliance

The agreement does not involve related parties and does not result in any conflicts of interest. Shares subscribed by DCX will be issued at fair value, compliant with applicable laws. The company has disclosed this development to stock exchanges as required under SEBI regulations.

Conclusion

The JVC is set up to manufacture radar systems in India, with participation from both DCX Systems and ELTA Systems, as part of defence manufacturing projects under the national production scheme.

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