DOMS Industries IPO Off to a Flying Start: Subscribed 4.96 Times on Day 1

13 Dec 2023 , 03:21 PM

DOMS Industries, a key player in India’s branded stationery and art products market, has witnessed a remarkable response to its Rs 1,200-crore IPO, being subscribed three times within hours of opening on December 13. Click here to subscribe the IPO. Here are the key highlights of this dynamic public offering:

Impressive Subscription Details:

• IPO Subscription Rate: 4.24 times at 3.25 PM
• Bids Received: 3.74 crore shares against the issue size of 88.37 lakh
• Retail Investors: Subscribed 15.66 times their allotted quota
• Non-Institutional Investors: Subscribed 4.96 times
• Qualified Institutional Buyers: Moderate initial subscription
• Employees: Subscribed 8.06 times

Institutional Backing: Ahead of the IPO opening, institutional investors demonstrated confidence by acquiring shares worth Rs 537.75 crore in the stationery manufacturer. 

IPO Structure:

• Fresh Issue: 44.3 lakh shares worth Rs 350 crore
• Offer for Sale (OFS): 1.07 crore shares
• FILA- Fabbrica Italiana Lapised Affini SpA, the corporate promoter, to offload Rs 800 crore worth of shares in the OFS.

Price Band: The price band for the IPO is set at Rs 750-790 per share, reflecting a balanced valuation.

Promoters’ Participation: Promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will individually sell Rs 25 crore worth of shares, showcasing their commitment to the offering.

Investor Allocation:

• Qualified Institutional Buyers (QIBs): 75% of the net offer size
• High-Net-Worth Individuals (Non-Institutional Investors): 15%
• Retail Investors: 10%

Utilization of Funds: DOMS Industries plans to utilize the net proceeds primarily to finance a new facility for a wide range of writing instruments, watercolour pens, markers, and highlighters. The remaining funds will be allocated for general corporate purposes.

As the second-largest player in India’s branded stationery and art products market, DOMS operates 13 manufacturing facilities across Umbergaon, Gujarat, spread over 34 acres.