Pencil maker DOMS files DRHP with SEBI to raise ₹1,200 crore via IPO

livemint.com:

₹1,200 crore of the leading holistic creative products player in the Indian stationery and art products market comprises a fresh issue aggregating up to ₹350 crore and an offer for sale (OFS) aggregating up to ₹850 crore. The offer for sale comprises of equity shares aggregating up to ₹800 crore million by corporate promoter, F.I.L.A.

- Fabbrica Italiana Lapis ed Affini S.p.A., equity shares aggregating up to ₹25 crore by Sanjay Mansukhlal Rajani and equity shares aggregating up to ₹25 crore by Ketan Mansukhlal Rajani. 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 to expand the company’s production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters as well as for general corporate purposes.

The company designs, develops, manufactures, and sell a wide range of well-designed, quality stationary and art products, primarily under the flagship brand ‘DOMS’ and sub brands C3, Amariz and Fixy Fix in the domestic market as well as in over 40 countries internationally, covering the US, Africa, Asia Pacific, Europe, and Middle East belt. As of FY23, the company’s core products such as pencils and mathematical instrument boxes hold a market share by value of 29 per cent and 30 per cent respectively.

While the product offerings have evolved over the past several years, the largest product ‘pencils’ contributed 31.66 per cent of the gross product sales amounting to ₹389.98 crore in FY23. The company has a wide and differentiated presence across multiple product categories and price points which has enabled DOMS to be the fastest growing stationery and art material products company in