Doms Industries' initial public offering (IPO) is planned to take place on Dalal Street next week, on December 13, Wednesday. The company's principal stake sale will end on Friday, December 15th. The issue's price range has yet to be disclosed, although it is expected to be announced this week.
According to media reports, the stationary products company is looking to raise Rs 1,200 crore via the primary route, which includes a fresh share sale of Rs 350 crore and an offer for sale (OFS) of Rs 850 by its promoters Fabbrica Italiana Lapis ed Affini SPA, Sanjay Mansukhlal Rajani, and Ketan Mansukhlal Rajani.
The net proceeds of the new issuance will be used to partially finance the cost of creating a new manufacturing facility to extend its manufacturing capabilities for a wide range of writing instruments, watercolor pens, markers, and highlighters, as well as general corporate reasons.
DOMS Industries, founded in 2006, is a stationery and art product firm principally engaged in creating, developing, manufacturing, and distributing a wide range of these items under the DOMS name. For the fiscal year 2022-23, it owned a 29 percent and a 30 percent market share in pencils and mathematical instrument boxes, respectively.
As of March 31, 2023, the corporation had a presence in more than 40 countries. It has an extensive global multi-channel distribution network that spans the Americas, Africa, Asia Pacific, Europe, and the Middle East. DOMS Industries has an exclusive distribution and marketing agreement with certain entities of the FILA Group in South Asia.
The corporation may set aside shares worth Rs 5 crore for eligible employees, who may be eligible for a discount on the offer. A minimum of 75% of the net offering will be reserved for qualified institutional bidders (QIBs), with non-institutional investors receiving 15% of the shares. Retail investors will receive the remaining 10% of the net issuance.
Doms Industries' IPO will be the first to go public following the implementation of Sebi's new 'T+3' criteria. Previously, a lot of corporations voluntarily chose T+3 listing; however, it is now mandatory.
The book running lead managers for the DOMS IPO are JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities, while the issuer is Link Intime India. The company's shares will be listed on both the BSE and the NSE.
