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DOMS Industries IPO opens for subscription

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Do you recall writing with Natraj pencil from your school days? Well, inquire with today's school kids, and each response would be different. Numerous brands, from stationary to color palette, are all diversified. Also, the stationery purchasing experience has transformed with the influx of global brands into the Indian market and the presence of local contenders. While stepping into a stationery shop is like entering a candy store, with huge varieties.

But, despite numerous choices, only a handful of indigenous stationery brands have successfully maintained their esteemed status. The primary reason behind this phenomenon is their failure to adapt to the changing times, encompassing aspects such as design, product variety, and innovation, thereby relegating them to the role of conventional backbenchers.

Amid this landscape, there exists an exceptional brand that has not only endured but thrived in the highly fragmented market. DOMS, hailing from Umbergaon, has become a formidable player, causing restlessness among more established stationery brands in the country. This outlier brand has expanded its influence to encompass 40 countries and commands a significant share of the market value.

Doms IPO Now Open

DOMS announced its IPO subscription and the bidding for it has already started. It witnessed strong demand from participants, on the second day of bidding, December 14. The issue was oversubscribed 15.2 times, with investors purchasing 13.43 crore shares against the IPO size of 0.88 crore, according to subscription data published by exchanges.

Now, know everything about pencil-maker DOMS industry’s IPO details:

Issue Date

The public issue of DOMS IPO already began on December 13, 2023. The subscription period will extend until December 15, 2023.

Share Price

The IPO's price band has been set at ₹750 to ₹790 per equity share, with a face value of ₹10.

Issue Size

DOMS IPO is a book-built issue with a total valuation of ₹1,200.00 crore. It comprises a fresh issue of 4,430,376 shares, amounting to ₹350.00 crores, and an offer for sale of 10,759,494 shares of 10, totaling ₹850.00 crore.

Reservation

QIBs (Qualified Institutional Buyers) have a reservation of not less than 75% of the net issue. Retail investors can access up to 10% of the net issue. HNIs (High Net Worth Individuals) have a reservation of not more than 15% of the net issue.

Promoter Holding

The promoters of DOMS IPO include Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya, and Fabbrica Italiana Lapised Affini.

Objective of IPO

The net proceeds from the fresh issue will be used to partially finance the establishment of a new manufacturing facility. The objective is to expand production capabilities for various writing instruments, watercolour pens, markers, highlighters, and general corporate purposes.

Allotment Date

Given the mandatory T+3 listing rules, DOMS Industries IPO allotment date is anticipated to be on December 18, 2023.

Listing Date

DOMS IPO is proposed for listing on both BSE and NSE. The likely listing date is December 20, 2023.

How to register

Link Intime India Private Ltd has been appointed as the official registrar of the public issue.

Grey Market Premium (GMP)

Shares of DOMS IPO traded at a premium of ₹515 in the grey market. According to market observers, the shares of the DOMS operator traded at more than 60 percent premium in the grey market.

Financial highlights of DOMS Industries Ltd for last 3 years

(Data as per company’s RHP filed with SEBI)

Tasting Success

Taking a closer look at DOMS Industries Ltd's financial highlights over the last three years, the company's roots trace back over four decades when it operated under the partnership firm "RR Industries." Established in 2006, the company has been actively involved in inorganic growth. As a stationery and art product company, DOMS Industries is a major player in India, ranking second in terms of volumes and dominating core products like pencils and mathematical instrument boxes. The company's flagship brand, DOMS, encompasses a diverse range of high-quality stationery and art materials across seven categories, including scholastic stationery, scholastic art materials, paper stationery, stationery kits, office supplies, hobby craft, and fine art products.

Notably, Umbergaon in the Valsad district of Gujarat, where DOMS Industries is based, is recognized as the pencil town of the country, is also home to the two largest players in the industry — Hindustan Pencils, with a 40% market share, and DOMS, controlling 30% of the market.

"DOMS IPO buzz, subscription anticipates the Allotment!”

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