DOMS Industries IPO: 10 Things To Know About Rs 1,200 Cr Issue; Bet?

An IPO is planned by DOMS Industries Ltd. (Doms), a stationery and art product company situated in Gujarat, with the goal of raising about Rs. 1,200cr. The firm creates, develops, produces, and markets a wide variety of stationery and art items, mostly in the home market and in more than 45 other countries worldwide, under its main brand "DOMS." The book-built issue of DOMS Industries, set to launch tomorrow December 13, has ten things you should know.

DOMS Industries IPO Details

Here are the 10 things to know about DOMS Industries IPO going to open on Wednesday, 13th December.

DOMS Industries IPO Size

The book-built issue of Rs 1,200.00 crores is DOMS IPO. The issue consists of an offer for sale (OFS) of 1.08 crore shares, valued at Rs 850.00 crores, and a fresh issuance of 0.44 crore shares, valued at Rs 350.00 crores.

DOMS Industries IPO Subscription Date

The subscription period for the DOMS IPO begins on December 13, 2023, and ends on December 15, 2023.

DOMS Industries IPO Price Band

Rs 750 to Rs 790 per share is the price band for the DOMS IPO.

DOMS Industries IPO Listing

The proposed listing date for the DOMS IPO is Wednesday, December 20, 2023, and it will take place on the BSE and NSE.

DOMS Industries IPO Share Allotment Date

On Monday, December 18, 2023, the allotment for the DOMS IPO is anticipated to be completed, and on Tuesday, December 19, 2023, the allotted shares will be credited to the demat account of the bidders.

DOMS Industries IPO Objective

The company won't receive any funds from the OFS issue. Doms plans to use Rs. 3,800 Cr of the net proceeds from the fresh issue to partially finance its current capacity development plan. The remaining net proceeds will be put to use for standard corporate purposes.

DOMS Industries IPO Lot Size

Retail investors must deposit a minimum of Rs 14,220 considering the minimum lot size for an application is 18 shares. For small NII, the minimum lot size investment required to subscribe for the issue is 15 lots, or 270 shares, worth Rs 213,300; for big NII, the minimum investment required is 71 lots, or 1,278 shares, worth Rs 1,009,620.

DOMS Industries IPO Registrar

The book-running lead managers of the DOMS IPO are Jm Financial Limited, BNP Paribas, ICICI Securities Limited, and Iifl Securities Ltd. The registrar of the IPO is Link Intime India Private Ltd.

DOMS Industries IPO GMP Today

According to InvestorGain.com, the latest GMP of DOMS IPO is Rs 475, as of Dec 12th 2023 03:54 PM.

DOMS Industries IPO Reservation

50% of the net issue is reserved for qualified institutional buyers, while 15% and 35% of the net issue are reserved for non-institutional bidders and retail investors, respectively, as per the DRHP.

DOMS Industries IPO Review

"With around 12% share, Doms is the second largest player in the domestic stationery & art materials market. Over the period, it has developed capabilities to offer quality and attractive products at attractive price levels, which is resulting in improved customer traction towards its products. In the near terms, venture into new revenue verticals (like pens writing instrument and expansion of innovative art stationary products) would be the growth driver. At higher price band, Doms is demanding a P/E multiple of 50x (to its FY23 EPS of Rs. 15.8), which is at significant premium to the peer average. Considering valuation only as a concern, we assign a "Subscribe with Caution" rating for the issue," said Choice Equity Broking Pvt. Ltd. (CEBPL).

Suman Bannerjee, CIO, Hedonova, a US-based Hedge fund said, "Doms Industries Limited holds a significant position in India's stationery and art material markets. With robust financials and a strong market presence, the company is anticipated to perform well. The IPO is expected to attract oversubscription, potentially resulting in significant listing gains. This optimism is reinforced by the Grey Market Premium (GMP) presently hovering around 55% above the issue value."

Disclaimer

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