DOMS Industries files draft papers with Sebi to launch Rs 1,200 crore IPO

DOMS Industries has filed its draft red herring prospectus (DRHP) with the capital market regulator Sebi to raise funds through its initial public offering (IPO). DOMS is a leading holistic creative products player in the Indian stationery and art products market.

According to the DRHP, the company is looking to raise Rs 1,200 crore from primary markets, which comprises a fresh issue of up to Rs 350 crore and an offer-for-sale (OFS) aggregating up to Rs 850 crore from the promoters of the company namely FILA - Fabbrica Italiana Lapis ed Affini, Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani.

The net proceeds from the fresh issue shall be utilized towards funding of 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, along with for general corporate purposes. Proceeds from OFS will go to the selling shareholders.

The company designs, develops, manufactures, and sell a wide range of well-designed, quality stationery and art products, primarily under the flagship brand ‘DOMS’ and sub brand named 'C3', 'Amariz' and 'Fixy Fix' in the domestic market as well as in over 40 countries internationally, including the US, Africa, Asia Pacific, Europe, and the Middle East.

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. Its core products- pencils and mathematical instrument boxes had a market share by value of 29 per cent and 30 per cent, respectively as of FY23.

The company has a wide and differentiated presence across multiple product categories and price points which has enabled DOMS to be the fastest growing stationery and art material products company in India in terms of revenue over the period from financial year 2020-2022. The 11 manufacturing facilities are located in Umbergaon, Gujarat and in Bari Brahma, Jammu and Kashmir.

The company has a widespread multi-channel distribution network with a strong pan-India presence. The domestic distribution network for general trade comprises over 100 super-stockists, and 3,750 distributors covering more than 115,000 retail touch points across 3,500 cities and towns. The company also markets its presence on modern trade and e-commerce.

The company has reserved not less than 75 per cent of the issue for qualified institutional bidders (QIBs), while non-institutional investors will get 15 per cent of the allocations. Remaining 10 per cent shares will go to the retail investors. The stock will be listed at both BSE and NSE.

JM Financial, BNP Paribas, ICICI Securities and IIFL Securities are the book-running lead managers to the issue, while Marathon Capital Advisory and ITI Capital have been appointed by the company as the corporate advisors. Link Intime India has been appointed as the registrar to the issue.

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