Upcoming IPO: Doms Industries' issue to open on December 13

The initial public offering (IPO) of Doms Industries is set to hit Dalal Street next week, that is, December 13, Wednesday. The company's primary stake sale will conclude on December 15, Friday. Price band for the issue is yet to be announced, likely in the ongoing week.

According to the media reports, the stationary products is looking to raise Rs 1,200 crore through primary route, which includes a fresh share sale of Rs 350 crore and offer for sale (OFS) of Rs 850 by its promoters Fabbrica Italiana Lapis ed Affini SPA, Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani.

The net proceeds from the fresh issue shall be utilized towards partly finance the cost of establishing a new manufacturing facility to expand its production capabilities for a wide range of writing instruments, watercolour pens, markers, and highlighters; and general corporate purposes.

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.  For the financial year 2022-23, it held 29 per cent and 30 per cent market share, respectively, in pencils and mathematical instrument boxes.

As of March 31, 2023, the company has marked its presence in over 40 countries.  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.

The company may reserve shares worth Rs 5 crore for its eligible employees, who may get a certain discount 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.

Doms Industries IPO is going to be the first issue to open after new guidelines of Sebi for 'T+3' have been mandatory. However, a number of companies have voluntarily have opted for T+3 listing earlier but now it is a compulsion.

JM Financial,  BNP Paribas, ICICI Securities and IIFL Securities are the book running lead managers of the DOMS 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.
 

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