DOMS Industries IPO ends with blockbuster subscription

Published on Dec 18, 2023 12:54

The initial public offer (IPO) of DOMS Industries received bids for 82,64,87,838 shares as against 88,37,407 shares on offer. The issue was subscribed 93.52 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 115.97 times. The Retail Individual Investors (RIIs) category was subscribed 66.51 times. The Non Institutional Investors (NIIs) category was subscribed 69.67 times.

The issue opened for bidding on Wednesday (13 December 2023) and it closed on Friday (15 December 2023). The price band of the IPO was fixed at Rs 750-790 per share.

The offer comprises fresh issue of up to Rs 350 crore and an offer for sale of up to Rs 850 crore.

The promoter and promoter group shareholding would decline to 30.6% post- IPO from 51% pre-IPO.

The company proposes to utilize the net proceeds from the fresh issue towards part financing the cost of establishing a new manufacturing facility to expand its production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters amounting Rs 280 crore and the balance towards general corporate purposes.

Ahead of the IPO, DOMS Industries on Tuesday, 12 December 2023, raised Rs 537.74 crore from anchor investors. The board allotted 68.06 lakh shares at Rs 790 each to 55 anchor investors.

Doms Industries designs, develops, manufactures, and sells a wide range of stationery and art products, primarily under its flagship brand DOMS, in the domestic market as well as in over 45 countries internationally, as of September 30, 2023. The company has a wide and differentiated product category, which includes over 3,800 SKUs and is spread across scholastic stationery, scholastic art material, paper stationery, kits and combos, office supplies, hobby and craft and fine art products.

The company has an exclusive tie-up with certain entities of the FILA Group for the distribution and marketing of their products in South Asia.

The firm reported a net profit of Rs 70.63 crore and total income of Rs 761.80 crore for the six months ended on 30 September 2023.