DOMS Industries shares down 4% after FILA monetises part stake via block trade

DOMS has plans to increase its presence to more countries and is in discussion with FILA subsidiaries, with plans to launch products through FILA subsidiaries in new geographies from the beginning of the next fiscal.

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Shares of DOMS Industries, a stationery and art supply company, are lower by nearly 4% in early trade on December 19 as FILA said it is selling up to 4.57% stake in the company, after the one-year lock-in for shareholders ended.

Italian stationery maker FILA had initiated the sale of shares in its Indian unit DOMS, through an accelerated book building (ABB) process on Wednesday, reducing its holding from 30.58% to 26.01%. The base size of the block trade is Rs 510 crore, with an option to upsize by Rs 254 crore, totalling up to Rs 764 crore. There will be a 90-day lock-in for the buyers of the shares.

A Nuvama note said the number of shares freed up after the lock-in amounts to 45% of DOM's outstanding equity.

The Italian company had listed its unit in India last December, and since the start of the year, shares of DOMS Industries have notched up a gain of about 130%. FILA had acquired a 51% stake in DOMS in 2012, investing a total of Rs 291 crore, and last year it offloaded a majority stake to reduce it to 30%.

DOMS has plans to increase its presence to more countries and is in discussion with FILA subsidiaries, with plans to launch products through FILA subsidiaries in new geographies from the beginning of the next fiscal. With strong domestic growth, DOMS said in November that it would like to maintain a balance of about 15-20% of business coming from exports.

Read More: DOMS Industries - Impressive Q2, sound growth strategy

The company recently completed the acquisition of a controlling stake in Uniclan Healthcare, a company engaged in manufacturing and marketing of diapers and baby wipes.

The construction at DOMS' over 44-acre facilities are under full swing and the company is on track to have its first building ready by Q3FY26, with Rs 57 crore invested for capital expenditure in construction and new machineries.

DOMS Industries has a market capitalisation of over Rs 17,800 crore.