The initial public offering (IPO) of DOMS Industries opened for subscription on Wednesday and will remain open until December 15, 2023.
The Rs 1,200 crore DOMS IPO comprises a fresh equity issue totaling Rs 350 crore, accompanied by a Rs 850 crore Offer for Sale (OFS). As the IPO opens for subscription, here are some key details about the public offering:
Fixed at Rs 750-790 per share, the company aims to raise Rs 1,200 crore at the upper end of the range. Retail investors can bid for 18 shares in one lot, with multiples available thereafter.
About 75% per cent of the offer is reserved for qualified institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail investors.
Grey Market Premium (GMP)
Shares of DOMS Industries Limited are reportedly commanding a premium of Rs 495 in the grey market, signaling strong demand.
Analysts advise subscribing to the issue, citing reasonable valuations and a strong brand presence that promises sustainable long-term growth.
Anand Rathi suggests subscribing for the IPO in the long term as DOMS Industries holds a leading position in the Indian stationery and art material sector, boasting a diverse product range that fuels its swift business expansion. The valuations are deemed reasonable by Anand Rathi.
Meanwhile, Swastika Investmart recommended subscribing to the Doms IPO, citing the company’s remarkable financial growth in recent years that has strengthened its market standing and future prospects. Despite the valuation being fully priced at 43x P/E, the recommendation is grounded in the firm’s robust brand, sustained growth, and optimistic market outlook.
The company reported a 41 per cent YoY decline in revenue from operations to Rs 403 crore in FY2023, accompanied by a loss of Rs 6 crore.
Following the implementation of T+3 listing starting December 1, 2023, the book build issue is anticipated to conclude share allocation on the following Monday (December 18, 2023). Consequently, adhering to the T+3 listing rule, the issue is expected to be listed on December 20, 2023.
Utilisation of net proceeds
Net proceeds from the IPO will be utilized for partially funding the cost of establishing a new manufacturing facility and general corporate purposes.
DOMS Industries operations
The company designs, develops, manufactures, and sells a diverse range of ‘stationery and art’ products, primarily under its flagship brand ‘Doms,’ catering to both domestic and international markets.