Incorporated in 2006, DOMS Industries Limited is set to make waves in the stock market with its Initial Public Offering (IPO). A stalwart in the stationery and art product industry, DOMS Industries Limited is primarily engaged in designing, developing, manufacturing, and selling a wide range of products under its flagship brand, DOMS. The IPO, a book-built issue of Rs 1,200.00 crores, is a combination of a fresh issue and an offer for sale, presenting a significant opportunity for investors to be a part of the company’s growth journey.
IPO Details:
The DOMS IPO is scheduled to open for subscription on December 13, 2023, and will close on December 15, 2023. The issue comprises a total of 15,189,873 shares, with a price band set at ₹750 to ₹790 per share and a lot size of 18 shares.
Structure of the Issue:
| Type | Number of Shares | Amount (in Crores) |
|---|---|---|
| Fresh Issue | 4,430,380 | ₹350.00 |
| Offer for Sale | 10,759,493 | ₹850.00 |
डोम्स इंडस्ट्रीज लिमिटेड IPO Reservation:
Investors can take note of the reservation details:
| Investor Category | Shares Offered |
|---|---|
| QIB | Not less than 75% of the Net Issue |
| Retail | Not more than 10% of the Net Issue |
| NII (HNI) | Not more than 15% of the Net Issue |
DOMS IPO Timeline (Tentative Schedule):
The IPO follows a well-defined schedule, providing transparency to investors:
| Event | Date |
|---|---|
| IPO Open Date | Wednesday, December 13, 2023 |
| IPO Close Date | Friday, December 15, 2023 |
| Basis of Allotment | Monday, December 18, 2023 |
| Initiation of Refunds | Tuesday, December 19, 2023 |
| Credit of Shares to Demat | Tuesday, December 19, 2023 |
| Listing Date | Wednesday, December 20, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 15, 2023 |
DOMS IPO Lot Size:
Investors can bid for a minimum of 18 shares and in multiples thereof. The lot size calculator provides insights into the minimum and maximum investment for various investor categories:
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 18 | ₹14,220 |
| Retail (Max) | 14 | 252 | ₹199,080 |
| S-HNI (Min) | 15 | 270 | ₹213,300 |
| S-HNI (Max) | 70 | 1,260 | ₹995,400 |
| B-HNI (Min) | 71 | 1,278 | ₹1,009,620 |
DOMS Today IPO GMP
| Price Range | Lot Size | Max. Investment | Bid Dates | Listing Date | GMP Yesterday (12 Dec 2023) | GMP Today (13 Dec 2023) | Expected Share Price | Expected Profit per Lot | Buy Y/N |
|---|---|---|---|---|---|---|---|---|---|
| ₹ 750 to ₹790 | 18 | ₹ 14220 | 13-Dec-23 to 15-Dec-23 | 20-Dec-23 | ₹450 | ₹490 | ₹1280 | ₹8820 | Y |
| Date | GMP |
|---|---|
| 13-Dec-2023 | ₹490 |
| 12-Dec-2023 | ₹450 |
| 11-Dec-2023 | ₹482 |
| 10-Dec-2023 | ₹483 |
| 9-Dec-2023 | ₹480 |
| 8-Dec-2023 | ₹481 |
| 7-Dec-2023 | ₹410 |
| 6-Dec-2023 | ₹410 |
| 5-Dec-2023 | ₹335 |
| 4-Dec-2023 | ₹200 |
DOMS IPO Promoter Holding:
The promoters of DOMS Industries Limited are Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya, and Fabbrica Italiana Lapis ed Affini S.p.A.
| Share Holding Pre Issue | 100% |
|---|---|
| Share Holding Post Issue | 74.97% |
डोम्स IPO Financial Information:
The company’s financials, as of September 30, 2023, reflect robust growth:
| Key Performance Indicator (KPI) | Values |
|---|---|
| P/E (x) | 43.19 |
| Market Cap (₹ Cr.) | ₹4,793.77 |
| ROE | 33.54% |
| ROCE | 33.31% |
| Debt/Equity | 0.28 |
| EPS (₹) | 18.29 |
| RoNW | 28.39% |
IPO Objectives:
The net proceeds of the Fresh Issue will be utilized for:
- Financing the establishment of a new manufacturing facility to expand production capabilities.
- General corporate purposes.
Company Overview:
As of March 31, 2023, DOMS Industries Limited has a global multi-channel distribution network across the Americas, Africa, Asia Pacific, Europe, and the Middle East. With a strong market presence in over 40 countries, the company held 29% and 30% market share, respectively, in Fiscal 2023 for its core products for pencils and mathematical instrument boxes.
Financial Performance:
The company’s financial performance indicates a positive trajectory:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets (₹ Cr.) | 829.46 | 639.78 | 497.46 | 457.52 |
| Revenue (₹ Cr.) | 764.22 | 1,216.52 | 686.23 | 408.79 |
| Profit After Tax | 73.91 | 102.87 | 17.14 | -6.03 |
| Net Worth (₹ Cr.) | 397.61 | 337.43 | 247.25 | 233.61 |
| Reserves and Surplus | 341.36 | 337.06 | 246.87 | 233.24 |
| Total Borrowing (₹ Cr.) | 176.38 | 100.07 | 84.90 | 97.27 |
Key Performance Indicators:
| KPI | Values |
|---|---|
| P/E (x) | 43.19 |
| Market Cap (₹ Cr.) | ₹4,793.77 |
| ROE | 33.54% |
| ROCE | 33.31% |
| Debt/Equity | 0.28 |
| EPS (₹) | 18.29 |
| RoNW | 28.39% |
IPO Review:
[Dilip Davda] DIL is the fastest-growing 2nd largest leader in stationary and related material products. It has marked tremendous growth since FY23 and that indicates its prospects going forward. It is on an expansion spree to enhance its product range as well as capacity to meet the rising demand. Based on FY24 earnings, the issue appears fully priced. Investors may consider parking funds for the medium to long term
in this emerging leader in the segment.
Investors are encouraged to refer to the DOMS IPO Red Herring Prospectus (RHP) for detailed information before making investment decisions.
This comprehensive article provides potential investors with a detailed overview of the DOMS IPO, offering insights into its structure, financials, objectives, and market position. As always, it is advisable for investors to conduct thorough research and consult financial experts before making any investment decisions.
