DOMS Industries buzzing in grey market ahead of IPO; GMP doubles in just 2 days
DOMS Industries are in high demand in the unlisted market. The issue will open for subscription on December 13 and close on December 15.
The price band for the Rs 1,200-crore offer has not been announced yet.
Despite this, the company's shares are trading with a premium of Rs 330 in the grey market.
The GMP has more than doubled in the last two days, indicating strong investor interest in the public offer.
The issue comprises fresh equity of Rs 350 crore and an offer for sale (OFS) of Rs 850 crore. Under the OFS, promoters Fabbrica Italiana Lapis, Sanjay Mansukhal Rajani and Keta Mansukhal Rajani will offload shares.
The offer is being made through the book-building process, where 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.
The price band for the offer will be announced soon.
The funds raised through the fresh issue are proposed to be utilized for the part funding of the cost of establishing a new manufacturing facility and for general corporate purposes.
Doms Industries designs, develops, manufactures, and sells a wide range of 'stationery and art' products, primarily under its flagship brand 'Doms', in the domestic market as well as in over 40 countries internationally.
Its core products such as pencils and mathematical instrument boxes enjoy high market shares — 29% and 30% by value in FY23, respectively.
The company is the second largest player in India’s branded ‘stationery and art’ products market, with a market share of 12% by value, as of FY23.
The company's revenue from operations fell 41% year-on-year (YoY) to Rs 403 crore in the financial year 2023. It had clocked a loss of Rs 6 crore in the same period against a
