DOMS Industries shares list at 77% premium over issue price; m-cap at Rs 8,500 crore

DOMS Industries Ltd made a strong market debut on Wednesday, as the stock got listed at Rs 1,400 on both BSE and NSE, a 77.22 per cent premium over its issue price of Rs 790. At this share price, DOMS Industries was commanding a market capitalisation of Rs 8,496.21 crore. The listing gain came in higher than the premium the grey market was assigning to the stock ahead of its debut.

Against sell orders of 36,052 shares on BSE, DOMS Industries had buy orders of 2,91,098 shares at 10.06 am. The listing ceremony took place at The International Convention Hall (First Floor), Bombay Stock Exchange. The stock has been added to dealings on the exchange in the list of ''B'' Group Securities.

“DOMS' listing came well in line with our expectations. Post listing, we believe valuations would go over stretched discounting next one-year earnings growth. Hence we recommend allotted investors to book profits while those investors who failed to get allotments in the public offer can wait and watch for reasonable dips post listing to accumulate for decent long term returns,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The second largest domestic player in the branded ‘stationery and art’ products market had received a strong response from investors during it IPO bidding process, with the issue getting subscribed a solid 99.34 times. DOMS Industries commanded a market share of nearly 12 per cent in terms of value at the end of FY23. The company's core products included pencils and mathematical instrument boxes. While DOMS enjoyed a market share of 29 per cent in pencils, it commanded a share of 30 per cent mathematical instrument boxes in FY23.

DOMS Industries operates a total of 13 manufacturing facilities across Gujarat, which are spread over approximately 34 acres of land. The facilities cover approximately 1.18 msf and is one of the largest stationery manufacturing facilities in India. DOMS Industries' annual installed capacity for the key products was 473.49 crore units, as on March 31. DOMS Industries also operate a manufacturing facility in Jammu and Kashmir that is spread across 2 acres of land covering approximately 0.07 million square feet. The company's domestic distribution network for general trade included 120 super-stockists and 4,000 distributors. It has 500 personnel covering more than 120,000 retail touch points in over 3,500 cities and towns.

Also read: Market at record high: Sensex jumps over 400 points; Nifty trades above 21,550

Also read: Stock recommendations by market analysts for December 20, 2023: Allcargo Logistics, Granules India and Tata Steel