DOMS Industries Limited, a leading player in the Indian stationery and art products market, is set to launch its ₹1,200 crore initial public offering (IPO) on December 13, which is going to be the first main board public issue of this month. The Gujarat-based company has set the IPO price band at ₹750-790 per share, which will close on December 15. The anchor book will open for bidding for a day on December 12. The shares of the company are expected to be listed on the BSE and NSE on December 20.
The company has reserved 75% of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and remaining 10% for retail investors, which 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.
The lot size is 18 shares and in multiples thereof, which means minimum amount for retail investors would be ₹14,220 for 1 lot and maximum of ₹199,080 for 14 lots or 252 shares.
The stationery products manufacturer is the third company from this sector to file for an IPO after pen makers Flair Writing Industries and Cello World recently made their debut on the stock exchanges. The company had submitted its paper with SEBI in August this year for which it received approval from the capital markets regulator SEBI last month.
The public issue of DOMS is a mix of a fresh issuance of shares worth ₹350 crore, and an offer for sale (OFS) of shares worth ₹850 crore by existing shareholders. Under the OFS, corporate promoter, F.I.L.A. will be selling equity shares worth up to ₹800 crore, while domestic promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will be offloading shares worth ₹25 crore each. F.I.L.A., a listed Italian multinational company engaged in the supply of various ‘art materials’ and ‘stationery products’, entered into a strategic partnership with the company in 2012 and currently holds a 51% stake in the DOMS.
The country’s second-largest pencil maker intends to use funds raised through the fresh issue to fund the cost of establishing a new manufacturing facility, to expand the company’s production capabilities for a wide range of writing instruments, water colour pens, markers, and highlighters, as well as for general corporate purposes.
Incorporated in 2006, DOMS is a leading manufacturer of stationery and art products, selling under the flagship brand, “DOMS” and sub brands C3, Amariz and Fixy Fix in the domestic market as well as in over 40 countries internationally, covering the U.S., Africa, Asia Pacific, Europe, and Middle East belt. The product categories which include over 3,770 SKUs, are classified into seven categories including scholastic stationery, scholastic art material, paper stationery, kits and combos, office supplies, hobby and craft and fine art products.
As per the offer document, DOMS’ core products such as pencils and mathematical instrument boxes enjoy a market share by value of 29% and 30%, respectively. The company posted net profit of ₹102.87 crore in the financial year 2023, up 500% over profit of ₹17.14 crore in the previous fiscal. The revenue from operations rose 77.3% to ₹1,212 crore in FY23 versus ₹683.6 crore in the previous financial year. The largest product ‘pencils’ contributed 31.66% of the gross product sales amounting to ₹390 crore in the fiscal 2023.
The company has 11 manufacturing facilities, which are located in Umbergaon, Gujarat and Bari Brahma, Jammu and Kashmir. The company has a widespread multi-channel distribution network, which comprises over 100 super-stockists, and 3,750 distributors along with a dedicated sales team of over 450 personnel covering more than 115,000 retail touch points across 3,500 cities and towns. The company also caters to consumers through modern trade and e-commerce.
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