Doms Industries Sets IPO Price Band; Issue Opens on Dec 13

Doms Industries IPO: Doms Industries, a renowned name in the stationery and art products sector, has announced the launch of its Initial Public Offering (IPO) slated to open on December 13, with the issue set to close on December 15. This marks a significant development as the first IPO of the month. The Gujarat-based company, known for its flagship brand DOMS, is offering its shares at a price band of Rs 750-790 per share.

Also See: Doms Industries IPO GMP

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Composition of the IPO

The IPO comprises a dual structure, involving a fresh issuance of shares worth Rs 350 crore by Doms Industries, coupled with an Offer for Sale (OFS) of Rs 850 crore worth of shares by existing shareholders. Notably, Italy-based corporate promoter FILA-Fabbrica Italiana Lapis ed Affini SpA plans to sell shares worth Rs 800 crore in the OFS, while individual promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani are each offloading shares worth Rs 25 crore.

Also Read: Doms Industries to Launch IPO on Dec 13 to Raise Rs 1,200 Crore

Employee Benefits and Reservation

In a move to benefit its employees, Doms Industries has reserved shares worth Rs 5 crore for them, offering these at a discount of Rs 75 each to the final issue price.

Market Position and Expansion Plans

Doms Industries, with a 12% market share by value in FY23 in India’s branded stationery and art products market, intends to utilize the net proceeds from the fresh issue to expand its manufacturing capabilities. This expansion includes the production of writing instruments, water color pens, markers, and highlighters. The remaining funds from the issue will be allocated for general corporate purposes.

Also Read: Kross Ltd Files ₹500 Crore IPO with SEBI, Eyes Capital Market Expansion; Check Details

Investment Details for Retail Investors

Retail investors interested in the IPO can bid for a minimum of 18 equity shares, and in multiples thereof. The minimum investment stands at Rs 14,220 for 18 shares (one lot), with a maximum investment capped at Rs 1,99,080 for 250 shares (14 lots), adhering to the Rs 2 lakh limit for IPO investments by retail investors.

Allocation for Investors

The offer size includes a 75% reservation for qualified institutional buyers, 15% for high-net-worth individuals, and 10% for retail investors.

Also See: Upcoming IPO in India

Financial Health and Market Share

Doms Industries has shown robust financial growth, with a 567.2% increase in net profit to Rs 95.8 crore for the year ended March FY23. The company’s revenue from operations surged by 77.3% YoY to Rs 1,212 crore during the same period. As of the six-month period ending September FY24, the company recorded a net profit of Rs 70.63 crore on revenue of Rs 761.8 crore. In core products like pencils and mathematical instrument boxes, Doms holds significant market shares of 29% and 30%, respectively, in FY23.

Lead Managers of the Issue

The IPO is being managed by JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities, serving as the book running lead managers.

This IPO marks a significant step for Doms Industries in its journey towards expanding its market presence and enhancing its manufacturing capabilities. The offer presents an opportunity for investors to be a part of a company with a strong market position and a proven track record of financial performance.

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