DOMS Industries IPO Review, Analysis, Price, Date, GMP

DOMS Industries IPO date: The public issue will open for subscription on 13th December 2023 and remain open until 15th December 2023.

• DIL is the stationery and materials product company with the fastest growth rate in India.    The business’s performance from FY22 to H1-FY24 was outstanding.    Looking at the issue’s annualized earnings for FY24, it looks fully priced.
• This emerging player has promising prospects based on its recent growth.
• Investing in this dividend-paying company may attract investors seeking medium- to long-term returns.

About Doms Industries

DOMS Industries Limited was founded in 1973 and is a company that develops, produces, and markets stationery and art products. These operations are carried out by the company under the “DOMS” flagship brand. As of September 2023, it was present in over 45 countries, including India. With an emphasis on important American and European markets, DOMS’s partnership with FILA in 2012 enabled the company to increase its footprint in the global market.

With a market share of about 12% by value, DOMS is the second-largest branded “stationery and art” product in India.

The products of DOMS fall into the following seven main categories.

• Office Supplies
• Hobby and Craft Supplies
• Paper Stationery
• Kits and Combos
• Scholastic Art Supplies
• Scholastic Stationery   
• Fine Art Products

In addition to “DOMS,” the company is also known for “C3,” “Amariz,” and “Fixyfix.” When using “wooden pencils.” Its production plants are situated in Bari Brahma, Jammu and Kashmir, and Umbergaon, Gujarat.

By September 2023, DOMS will have a domestic distribution network spanning 120,000+ retail touch points across more than 3,500 cities and towns, with 120+ super-stockists and 4,000+ distributors. The business also uses e-commerce and contemporary trade to sell its goods.

Peer Comparison

• Kokuyo Camlin Limited
• Linc Limited
• Navneet Education Limited
• Flair Writing Industries

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Issue Details and Capital History for Doms Industries

The company is launching an Offer for Sale (OFS) worth Rs. 850 cr. (approximately 10759494 shares at the upper cap) in addition to its first combo book building route IPO of new equity shares of Rs. 10 each worth Rs. 350 cr. (approximately 4430376 shares at upper cap). Therefore, the company is considering raising a total of Rs. 1200 crore, or roughly 15189870 shares at the upper cap.

A price range of Rs. 750–Rs. 790 per share has been announced. Subscriptions for the issue will be accepted beginning on December 13, 2023, and ending on December 15, 2023. An application must be submitted for a minimum of eighteen shares, and then in multiples of those shares. The shares will be listed on the BSE and NSE following allocation.

The issue makes up 25.03% of the company’s paid-up capital following its initial public offering. It will use Rs. 280.00 cr. of the net proceeds of the new equity issue to partially finance the proposed new project and use the remaining funds for general corporate purposes.

For its eligible employees, the company has reserved shares worth Rs. 5.00 cr. and is giving them a discount of Rs. 75 per share. It has set aside a minimum of 75% for QIBs, a maximum of 15% for HNIs, and a maximum of 10% for retail investors from the remaining amount.

JM Financial Ltd., BNP Paribas, ICICI Securities Ltd., and IIFL Securities Ltd. are the four Book Running Lead Managers for this issue; Link Intime India Pvt. Ltd. is the registrar.

After issuing its initial equity shares at par value, the company went on to issue additional equity shares between February 2012 and October 2015, with prices ranging from Rs. 5242.38 to Rs. 20735.50 per share. In July 2023, bonus shares were also distributed in a ratio of 150 for 1.  The promoters and selling stakeholders paid an average of Rs. 0.03, Rs. 0.07, and Rs. 101.53 per share to acquire shares.

DIL’s current paid-up equity capital of Rs. 56.25 cr will increase to Rs. 60.68 cr following the IPO. The target market capitalization for the company is Rs. 4793.77 cr., based on the upper cap of the IPO price band.

Doms Industries IPO Subscription Details

• The IPO has a 1200 Cr issue size.
• DOMS Industries IPO has a price range of Rs 750 to Rs 790.
• DOMS Industries IPO shares are scheduled to take place on December 20, 2023.
• DOMS Industries IPO has recently estimated GMP is Rs 482.
• DOMS Industries IPO shares have been subscribed _ at times.

DOMS Industries IPO Valuation

DOMS Industries IPO Issue Size

DOMS Industries IPO Market Lots

DOMS Industries IPO share offer

Doms Limited IPO Allotment Details

Doms Industries IPO Key Points

Strengths

1. With a wide range of products, the company holds a dominant position in the Indian “stationery and art material” market, propelling quick corporate expansion.

2. Its product portfolio, which consists of 3800 SKUs, is diverse.

3. A strong recall of the brand thanks to its innovative, distinctive, and high-quality products.

4. It also boasts a strong infrastructure for manufacturing, emphasizing backward integration to boost productivity.

5. The business has a strong multi-channel distribution network that is present throughout all of India.

6. The strategic alliance with F.I.L.A. provides access to international markets and product expertise.

7. A skilled management team and seasoned promoters.

Risks

1. The FILA Group is essential to the company’s business operations and export sales.

2. The company’s best-selling products determine its revenue stream.

3. The business is under a lot of pressure from competitors.

4. The business has previously suffered losses.

5. Cash flows that were negative in prior fiscal years.

6. Works with unorganized players in a fragmented industry.

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