- The IPO is a mix of a fresh issuance of shares worth ₹350 crore by the company, and an offer-for-sale of ₹850 crore worth of shares by existing shareholders
- Price Band fixed at ₹750 – ₹790 per Equity Share of face value of ₹10
- Anchor Investor Bidding Date : Tuesday, December 12, 2023
- Bid/ Offer Closing Date – Friday, December 15, 2023
- Bids can be made for a minimum of 18 Equity Shares and in multiples of 18 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, DEC 10
DOMS Industries Limited, the stationery and art products manufacturer, has fixed the price band at ₹ 750-790 per share for its public issue opening on Wednesday, December 13, 2023.
The Rs 1,200-crore public offer will open for subscription on Wednesday, Deember 13 and close on Friday, 15th. Bidding for the anchor book will take place for a day on Tuesday, December 12.
The IPO is a mix of a fresh issuance of shares worth ₹350 crore by the company, and an offer-for-sale (OFS) of ₹850 crore worth of shares by existing shareholders.
Replying you to query on the fuuture of the stationery industry in Digital India, Managing Director Santosh Raveshia said, “The company makes 5.7 million pencils a day or about 1.7 billion units per annum. Writing will remain the main part of education and hence we have a bright future.”
Italy-based corporate promoter FILA- Fabbrica Italiana Lapised Affini SpA will sell ₹800-crore shares in the OFS, while promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will offload shares worth ₹25 crore each in the OFS.
The offer includes a reservation of ₹5 crore worth of shares for employees of the company, who will get these shares at a discount of ₹75 each to the final issue price.
DOMS, the second largest player in India’s branded stationery and art products market with a market share of 12 percent by value in FY23, will spend the net fresh issue proceeds for new manufacturing facility in Valsad district of Gujarat to expand production capabilities for writing instruments, water colour pens, markers and highlighters. And the remaining issue proceeds will be kept for general corporate purposes.
The Gujarat-based company that sells stationery and art products under its flagship brand DOMS said the bids can be made for a minimum of 18 equity shares and in multiples of 18 shares thereafter. Hence, retail investors can invest a minimum of ₹14,220 for 18 shares (one lot) and their maximum investment would be ₹1,99,080 for 250 shares (14 lots) as they cannot exceed their investment limit of ₹2 lakh in IPO.
About 75 percent of the offer size has been reserved for qualified institutional buyers, 15 percent for high net-worth individuals, and the rest 10 percent for retail investors.
DOMS that enjoys 29 percent and 30 percent market share in core products such as pencils and mathematical instrument boxes in FY23, had a healthy track record of financial numbers. The net profit increased by 567.2 percent on-year to ₹95.8 crore for year ended March FY23 and revenue from operations jumped 77.3 percent YoY to ₹1,212 crore during the same period, while in six months period ending in September FY24, it recorded net profit of ₹70.63 crore on revenue of ₹761.8 crore.
JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities are the book running lead managers to the issue.
