DOMS Industries IPO: GMP jumps 63% today; issue booked over 5 times on Day 1

DOMS IPO has been subscribed 5.71 times with bids coming in for 5.04 crore shares against the issue size of 88.37 lakh shares

DOMS Indutries’ grey market premium (GMP) surged to 63 percent over the IPO price to Rs 500 on December 14. This implies a listing price of Rs 1,290 against the IPO price of Rs 790 per share. The issue was fully subscribed within hours on the first day of bidding, December 13.

The grey market is an unofficial ecosystem where shares start trading much before the allotment and until the listing day. Investors often track the grey market premium (GMP) to get an indication of the listing price.

Also Read: DOMS Industries IPO: A deep dive into its business, risk factors and whether you should invest

DOMS IPO has been subscribed 5.71 times with bids coming in for 5.04 crore shares against the issue size of 88.37 lakh shares. Retail investors had bought 19.13 times their allotted quota of shares. The portion set aside for non-institutional investors was subscribed 7.95 times, while qualified institutional buyers were off to a slow start, picking 0.06 times. The price band for the issue has been fixed at Rs 750-790 a share.

Several brokerages, including Choice, Anand Rathi, Mehta Equities, KR Choksey and StoxBox have assigned a ‘subscribe’ rating to the issue.

Also Read: DOMS Industries IPO: Should you subscribe to Rs 1,200 crore issue?

DOMS raised Rs 537.75 via anchor book, ahead of the IPO. Abu Dhabi Investment Authority, Optimix Wholesale Global Emerging Markets, Ashoka Whiteoak Emerging Markets, Fidelity Funds, Goldman Sachs, Theleme India Master Fund and Belgrave Investment Fund were the anchor investors.

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The IPO, which will close on December 15, comprises a fresh issue of 44.3 lakh shares worth Rs 350 crore and an offer for sale (OFS) of 1.07 crore shares. FILA- Fabbrica Italiana Lapised Affini SpA, the corporate promoter, plans to offload Rs 800 crore worth of shares in the OFS. The average cost of acquisition of these shares was Rs 101.53 each. Promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will sell Rs 25 crore worth of shares each.

Also Read: Doms Industries IPO: 10 things to know before subscribing to Rs 1,200 crore issue

DOMS Industries designs, develops, manufactures, and sells a wide range of stationery and art products in the domestic market as well as in more than 45 countries. The company is 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.

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