DOMS Industries IPO Generates Strong Investor Interest, GMP Soars; Check Latest Subscription Here

DOMS Industries Ltd's Initial Public Offering (IPO) enters its final day of subscription, with the bidding set to close on 15th December 2023. The stationery brand, known for its dominance in the pencils and mathematical instrument boxes market, has set the IPO price in the range of Rs 750 to Rs 790 per equity share.

The response from investors has been robust, with the public issue, valued at Rs 1,200 crore, being subscribed 15.20 times after the first two days. The retail portion has witnessed an overwhelming response, being oversubscribed 41.18 times, showcasing the high level of interest among individual investors. Meanwhile, the Non-Institutional Investors (NII) portion has been subscribed 25.83 times, and the Qualified Institutional Buyers (QIB) segment has seen a subscription of 1.18 times.

As of 12:20 pm on the third day of bidding, the overall subscription has surged to 22.34 times, reflecting positive investor sentiment towards DOMS Industries growth. The retail portion is now oversubscribed by an impressive 53.71 times, while the NII and QIB segments have seen subscriptions of 42.14 times and 1.99 times, respectively.

The grey market, fueled by bullish sentiments and a positive response from investors, has witnessed a significant surge in the Grey Market Premium (GMP). Shares of DOMS Industries Limited are currently trading at a premium of Rs 502, up from Rs 451 on the IPO subscription opening date. This indicates a notable increase of Rs 51 in just two days.

Market observers attribute this rise in DOMS IPO GMP to the strong investor response and overall bullish sentiments on Dalal Street. The enthusiasm among investors is also reflected in the T+3 listing, which has become mandatory from 1st December 2023. The IPO allotment date for DOMS is expected on 18th December 2023, with the listing date anticipated on 20th December 2023.

Dhruv Mudaraddi, a Research Analyst at StoxBox, has given a 'subscribe' recommendation to the DOMS IPO. Mudaraddi notes, "DOMS Industries Ltd. is a proxy play on the growing stationery and art products industry in India and holds a significant market share in pencils and mathematical instrument boxes in the domestic market." He highlights the company's focus on backward integration, resulting in cost efficiencies and shortened market timing for its products.

Despite the positive outlook, Mudaraddi cautions investors, stating, "We believe that the issue is fully priced at a P/E multiple of around 30x annualized FY24 earnings and advise investors to subscribe to the issue for the benefit of listing gains."

With the IPO subscription deadline looming, investors are closely watching DOMS Industries Ltd, anticipating the potential for strong listing gains in the current market environment.