DOMS Industries shares list at 77% premium over IPO price
DOMS Industries shares got listed at a premium of 77.2% (Rs 610) at Rs 1400 apiece on the bourses on Wednesday. The issue was priced at Rs 790 at the upper end.
Net proceeds will be utilised for the part funding of the cost of establishing a new manufacturing facility and general corporate purposes.
DOMS Industries' public offer was subscribed 93 times at close. The category reserved for retail investors was subscribed the most at 69 times, followed by NIIs at 66 times. The QIB portion of the issue was booked 116 times.
The company boasts a track record of impressive financial performance with consistent revenue and profit growth, further fueled by robust expansion plans that unlock exciting future potential.
«The hefty GMP already anticipates much of the company's future growth, leaving limited immediate gains on the table. Therefore, we recommend skipping fresh buys on the listing. Investors seeking quick profits can consider booking gains and exiting,» said Shivani Nyati, Head of Wealth, Swastika Investmart.
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Analysts view on DOMS Industries
Notwithstanding the listing gains, analysts are bullish on the company even in the long term given the company's innovation and pricing strategy in the segment with a high growth target audience.
«DOMS' robust fundamentals and attractive growth trajectory might entice long-term investors. For them, holding the stock remains an option, but patience will be a crucial virtue,» Nyati said.
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
