India Shelter Finance, DOMS Industries IPOs to open today; check GMP, issue details

The primary market is going to be action packed this week as three main board initial public offers (IPO) will hit Dalal Street. The IPO of India Shelter Finance and DOMS Industries will open for subscription today, while the public issue of INOX India will begin on December 14. All these public offers will be open for subscription for three trading days and they look to collectively raise ₹3,859 crore via IPO route.

Ahead of the opening of public offers, all these three IPOs are creating buzz in the grey market, indicating strong listings on the domestic bourses. While India Shelter Finance was commanding a grey market premium (GMP) of 29.41%, or ₹145 apiece, over the issue price, DOMS Industries’ last GMP price was ₹495 per share, or 62.6%. Inox India’s last GMP was ₹330, or 50% over the IPO price band.

The grey market is an unregulated market where shares are traded before they are listed on the stock exchanges. The GMP gives an early sign how a particular IPO may react on the day of listing. A positive GMP signals that the IPO may be listed at a premium, while a negative GMP shows that the IPO may debut at a discount.

Here’s all you need to know before IPOs open for subscription today:

India Shelter Finance Corporation

Affordable housing financer India Shelter Finance Corporation, backed by WestBridge Capital and Nexus Venture Partners, has fixed price band at ₹469-493 per share and looks to raise ₹1,200 crore at the upper end of the issue price. The shares are expected to be listed on the BSE and NSE on December 20.

Ahead of the IPO, the Gurugram-based housing financing company raised ₹360 crore via anchor book by allocating 7,302,229 equity shares to 38 anchor investors at the price of ₹493 per share.

The IPO comprises a fresh issue of 1.62 crore shares worth ₹800 crore and an offer for sale of 81.13 lakh shares worth ₹400 crore. 

The lot size of the IPO is 30 shares and in multiples thereof, which means the minimum application amount will be ₹14,790 for one lot and maximum will be ₹192,270 for 13 lots or 390 shares. The company has reserved half of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 35% for retail investors.

The company intends to use the fund raised from the issuance of fresh equities to meet future capital requirements toward onward lending. The fund will be partially utilised for general corporate purposes.

Incorporated in 1998, India Shelter Finance Corporation provides home loans and loans against property to customers in the low and middle-income segments. As of March 31, 2023, India Shelter Finance had a network of 183 branches spread across 15 states with a significant presence in the states of Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, and Gujarat.

Dilip Davda, Consulting Editor at Chittorgarh, has given "Apply" recommendation to India Shelter Finance IPO, while Capital Market and Swastika Investmart have given "May Apply" ratings to the issue. 

DOMS Industries

The Gujarat-based company, a leading player in the Indian stationery and art products market, aims to raise ₹1,200 crore via IPO at a price band at ₹750-790 per share. The shares of the company are slated to make debut on the stock exchanges on December 20.

The company has already raised ₹537.75 crore by allocation of 68,06,961 equity shares to anchor investors for ₹790 per share.

The IPO 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. The company has reserved 75% of the issue for QIBs, 15% for NIIs, and the 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 pencil maker aims 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.

Swastika Investmart and Dilip Davda, Consulting Editor at Chittorgarh, has given "Apply" recommendation to DOMS IPO, while Capital Market has given "May Apply" ratings to the issue. Axis Capital has "Not Rated" the IPO.

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