DOMS Industries Limited (DOMS), a leading manufacturer of stationery products in India, is poised to enter the public domain through an initial public offering (IPO). This article delves into the intricacies of the DOMS IPO, providing a comprehensive overview for potential investors.
Established in 1976, DOMS has carved a niche for itself as a household name in India, synonymous with quality and affordability in writing instruments and other stationery products. The company manufactures a diverse range of pens, notebooks, art supplies, and other stationery items, catering to a broad customer base across various segments, including students, professionals, and artists. DOMS boasts a strong distribution network across India, with a presence in over 26 states and union territories.
DOMS has demonstrated consistent growth and profitability over the years. In the fiscal year 2023, the company recorded a net profit of ₹194 crore, showcasing its financial resilience. The company's revenue stood at ₹1,180 crore in the same fiscal year, reflecting its strong market position.
The proposed IPO comprises a fresh issue of up to ₹292 crore and an offer for sale (OFS) of up to ₹301 crore. The IPO is scheduled to open on December 13, 2023, and close on December 15, 2023. The corrected and confirmed price band for the IPO is ₹750 to ₹790 per share.
IPO Opening Date: December 13, 2023
IPO Closing Date: December 15, 2023
Listing Date: December 22, 2023 (Tentative)
Promoter holding (pre and post IPO): 74.74% [pre-IPO holding]% 53.7% [post-IPO holding]%
Lot Size: 18 shares
IPO Price Band: ₹750 to ₹790 per share
Objectives of the Issue
DOMS intends to utilize the proceeds from the IPO to:
Expand its manufacturing capacity: The company aims to invest a significant portion of the proceeds in expanding its manufacturing capacity to meet the increasing demand for its stationery products.
Enhance its brand presence and marketing initiatives: DOMS plans to utilize a portion of the funds for brand-building activities and marketing campaigns to strengthen its market share and brand awareness.
Pursue strategic acquisitions and partnerships: The company aims to explore potential acquisitions and partnerships to bolster its product portfolio and expand its market reach.
Strengthen its capital base: A portion of the IPO proceeds will be used to enhance the company's capital adequacy ratio, further bolstering its financial stability and supporting future growth initiatives.
Grey Market Premium (GMP)
The IPO grey market premium (GMP) for DOMS currently stands around ₹85 per share. This indicates that investors in the grey market are willing to pay ₹835 to ₹875 per share for the company's shares, suggesting significant investor interest in the IPO.
DOMS IPO presents an attractive opportunity for investors to gain exposure to a well-established stationery company with a strong track record and a focus on growth. The company's robust financial performance, experienced management team, and diverse product portfolio position it well to capitalize on the growing demand for stationery products in India. However, investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in any IPO.
Disclaimer: All information is provided for educational and informational purposes only. Data is fetched from publicly available sources such as the DRHP filed by the company and other reliable sources. The website or the author takes no guarantee for the accuracy of the data; however, we have tried our best to present accurate data to our readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.