DOMS Industries GMP: Stock trading at nearly 60% premium ahead of IPO launch
The current GMP is around Rs 465, compared with an issue price of Rs 790. The shares have been in heavy demand in the unlisted market since the announcement of the IPO launch.
DOMS IPO comprises a fresh equity issue worth Rs 350 crore with 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 price band of this public issue is fixed at Rs 750-790, and at the upper end, the company plans to raise Rs 1,200 crore. Investors can bid for 18 shares in one lot and multiples thereafter.
About 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.
At the upper price band, the company is valued at a P/E of 46x EV/EBITDA with a market cap of Rs 4,793 crore post the issue.
Analysts believe the company is fairly priced in the IPO.
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.
