DOMS IPO is a book-built issue of Rs 1,200 crores. The issue is a combination of a fresh issue and an offer for sale. The Fresh Issue consists of 4,430,380 (~0.44 Cr) shares, aggregating to Rs. 350 Crores at the upper end of the price band at Rs. 790 per share. The Offer for Sale consists of 10,759,493 (~1.07 Cr) shares of Rs. 10 face value, aggregating up to Rs. 850 Crores, at the upper end of the price band at Rs. 790 per share. As per the company’s plan, the issue will consist of an offer-forsale by the investors and promoters, namely: x F.I.L.A.- Fabbrica Italiana Lapis ed Affini S.p.A. will be offloading shares aggregating to Rs. 800 Crores. x Sanjay Mansukhlal Rajani will be offloading equity shares aggregating to Rs. 25 Crores. x Ketan Mansukhlal Rajani will be offloading equity shares aggregating to Rs. 25 Crores.
Valuation and OutlookPost-issue, promoters will hold less than 75%, thereby implying no likely imminent dilution. Impressive CAGR (FY21-FY23): Revenue surged 72%, EBITDA by 131%, and PAT reversed from FY21's loss to profit in FY23. Projections indicate a promising 50% profitability surge from FY23 to FY24. At a projected FY24 PE ratio of 32x, the company presents an attractive valuation proposition.
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