DOMS Industries IPO to open on December 13; price band, lot size & more

The initial public offering (IPO) of DOMS Industries will open for bidding on Wednesday, December 13. The price band for the issue has been fixed in the Rs 750-790 apiece.  Potential investors can bid for a lot size of 18 equity shares and in multiples thereafter. The three-day bidding for the issue would close on Friday, December 15. Ahead of DOMS IPO, the anchor book will open on Tuesday, December 12.

Incorporated in 2006, DOMS Industries is a stationery and art product company primarily engaged in designing, developing, manufacturing, and selling a wide range of these products under the flagship brand, DOMS. It held 29 per cent and 30 per cent market share, respectively, in pencils and mathematical instrument boxes, for the financial year 2022-23.

DOMS Industries is looking to raise a total of Rs 1,200 crore, which includes a fresh share sale of Rs 350 crore and offer for sale (OFS) of up to Rs 850 crore by its promoter Fabbrica Italiana Lapis ed Affini SPA, Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani.

The net proceeds from the fresh issue shall be utilised partly towards financing the cost of a new manufacturing facility that is seen expanding DOMS’ production capabilities for a wide range of writing instruments, watercolour pens, markers, and highlighters. The proceeds would also be used for general corporate purposes.

DOMS Industries had its presence in over 40 countries as of March 31, 2023. It has a strong, global multi-channel distribution network across the Americas, Africa, Asia Pacific, Europe, and the Middle East. DOMS Industries has an exclusive tie-up with certain entities of the FILA Group for the distribution and marketing of their products in South Asia.

DOMS Industries reported a net profit of Rs 73.91 crore with a revenue of Rs 764.22 crore for the period year ended on September 30, 2023. The company reported net profit of Rs 102.87 crore with a revenue of Rs 1,216.52 crore for the financial year ended on March 31, 2023.

The company may reserve shares worth Rs 5 crore for its eligible employees, who will get a discount of Rs 75 per share in the issue. Not less than 75 per cent of the net issue shall be reserved for qualified institutional bidders (QIBs), while non-institutional investors will have 15 per cent shares allocated towards them. Retail investors will get the remaining 10 per cent of net issue.

JM Financial, BNP Paribas, ICICI Securities and IIFL Securities are the book running lead managers of the DOMS Industries IPO, while Link Intime India has been appointed for the issue. Shares of the company shall be listed on both the exchange- BSE and NSE on December 20, Wednesday. 

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