Doms Industries, the stationery and art products manufacturer, has fixed the price band at Rs 750-790 per share for its public issue opening next week. This would be the first IPO this month.
The Rs 1,200-crore public offer will open for subscription on December 13 and close on 15th. Bidding for the anchor book will take place for a day on December 12.
The IPO is a mix of a fresh issuance of shares worth Rs 350 crore by the company, and an offer-for-sale (OFS) of Rs 850 crore worth of shares by existing shareholders.
Italy-based corporate promoter FILA- Fabbrica Italiana Lapised Affini SpA will sell Rs 800-crore shares in the OFS, while promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will offload shares worth Rs 25 crore each in the OFS.
The offer includes a reservation of Rs 5 crore worth of shares for employees of the company, who will get these shares at a discount of Rs 75 each to the final issue price.
Also read: INOXCVA to launch IPO in December after receiving regulatory nod from SEBI
Doms, the second largest player in India’s branded stationery and art products market with a market share of 12 percent by value in FY23, will spend the net fresh issue proceeds for new manufacturing facility to expand production capabilities for writing instruments, water colour pens, markers and highlighters. And the remaining issue proceeds will be kept for general corporate purposes.
The Gujarat-based company that sells stationery and art products under its flagship brand DOMS said the bids can be made for a minimum of 18 equity shares and in multiples of 18 shares thereafter. Hence, retail investors can invest a minimum of Rs 14,220 for 18 shares (one lot ) and their maximum investment would be Rs 1,99,080 for 250 shares (14 lots) as they can not exceed their investment limit of Rs 2 lakh in IPO.
Also read: TPG & Norwest Ventures-backed SK Finance planning $250-300 million IPO in 2024
About 75 percent of the offer size has been reserved for qualified institutional buyers, 15 percent for high net-worth individuals, and the rest 10 percent for retail investors.
Doms that enjoys 29 percent and 30 percent market share in core products such as pencils and mathematical instrument boxes in FY23, had a healthy track record of financial numbers. The net profit increased by 567.2 percent on-year to Rs 95.8 crore for year ended March FY23 and revenue from operations jumped 77.3 percent YoY to Rs 1,212 crore during the same period, while in six months period ending in September FY24, it recorded net profit of Rs 70.63 crore on revenue of Rs 761.8 crore.
Also read: 360 One Special Opportunities Fund picks Rs 30-crore worth of shares in IPO-bound Innova Captab
JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities are the book running lead managers to the issue.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
