Italian company FILA-backed stationery and art products maker Doms Industries filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on August 22, with an aim to raise Rs 1,200 crore via an initial public offering.
The public issue comprises a fresh issuance of shares worth Rs 350 crore and an offer-for-sale of Rs 850 crore by promoters.
FILA- Fabbrica Italiana Lapised Affini S.p.A. is the corporate promoter in the company with 51 percent shareholding, offloading shares worth Rs 800 crore via OFS, while domestic promoter Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will be selling shares worth Rs 25 crore each via OFS.
The Gujarat-based company manufacturing and selling products under DOMS brand may consider a pre-IPO placement of Rs 70 crore prior to the filing of the red herring prospectus with the ROC. If the pre-IPO placement is completed, the size of the fresh issue will be reduced to the extent of such pre-IPO placement, the company said in its prospectus.
Also read: TVS Supply Chain Solutions debuts tomorrow. Will it be a tepid listing?
Doms Industries, which sells products in the domestic market as well as in over 40 countries, claimed to be enjoying 29 percent and 30 percent market share by value in its core products such as pencils and mathematical instrument boxes respectively in FY23.
In the year ended March FY23, the company has posted net profit of Rs 102.87 crore, increasing 500 percent over profit of Rs 17.14 crore in previous year. The revenue from operations jumped by 77.3 percent to Rs 1,212 crore in FY23, compared to Rs 683.6 crore in previous financial year.
The fresh issue proceeds will be utilised for establishing a new manufacturing facility to expand production capabilities for a wide range of writing instruments, water-colour pens, markers and highlighters at Valsad in Gujarat, and for general corporate purposes.
Click Here To Read All IPO News
JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities are appointed as merchant bankers for 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!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
