Doms Industries, a manufacturer of stationery and art products, is planning to raise Rs 1,200 crore through an IPO. The IPO will open on December 13 and close on December 15. Doms Industries will be the first company to debut in the stock market under the T+3 timeline, as directed by SEBI from December 1, 2023. The IPO will open for anchor investors on December 12. The company will issue Rs 350 crore worth of new shares in the IPO, while the promoters and corporate promoter FILA will sell shares worth Rs 850 crore. Doms Industries aims to use the proceeds from the IPO to expand its production capacity and meet general corporate objectives.

According to the draft red herring prospectus filed by Doms Industries on December 2, Sanjay Manasukhlal Rajani and Ketan Manasukhlal Rajani’s company holds an 8.63% stake in the company. The company also has a 4% stake held by Chandi Vijay Somaiya, Sejal Santosh Ravesiya, and Sheetal Hiren Parpani. The company plans to increase its production capacity for writing tools, watercolor pens, markers, and highlighters with the help of a new plant. The IPO is reserved for employees of the company, with up to Rs 5 crore reserved for them, followed by 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. The allocation of Doms Industries’ shares is expected to take place on December 18, with listing on BSE and NSE on December 20. JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities are the merchant bankers for this issue, while Link Intime India is the registrar. The company’s net profit for the financial year 2022-23 increased by 567.2% to Rs 95.8 crore, while its operating revenue increased by 77.3% to Rs 1,212 crore. The EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 149% to Rs 186.7 crore on an annual basis. During April-September 2023, the company reported a revenue of Rs 761.8 crore and a net profit of Rs 70.63 crore.

Doms Industries IPO

1. Doms Industries is bringing an IPO worth INR 1,200 crore.
2. The IPO will open on 13th December and close on 15th December.
3. Doms Industries will be the first company to start trading in the share market on a T+3 timeline.
4. SEBI had directed companies planning to launch IPOs from 1st December 2023 to shift from the previous T+6 format to the T+3 timeline.
5. The IPO will open for anchor investors on 12th December for one day.
6. The IPO will issue new shares worth INR 350 crore, and the promoters will sell shares worth INR 850 crore.
7. Corporate promoter FILA will sell shares worth INR 800 crore.
8. Promoters Sanjay Manasukhlal Rajani and Ketan Manasukhlal Rajani will sell shares worth INR 25 crore each through OFS.
9. Italian group FILA holds a 51% stake in Doms Industries.
10. Santosh Rasiklal Ravesia is the second-largest shareholder among the promoters with a 17% stake.
11. According to the filing details submitted by Doms Industries on 2nd December, Sanjay Manasukhlal Rajani and Ketan Manasukhlal Rajani’s company holds an 8.63% stake.
12. Chandni Vijay Somaiya, Sejal Santosh Ravesia, and Sheetal Hiren Parpani hold a 4% stake each.
13. In the financial year 2022-2023, Doms had a market share of 29% and 30% in pencil and mathematical instrument boxes, respectively.
14. The proceeds from the IPO will be used for setting up a new manufacturing facility.
15. The company aims to increase production capacity for writing tools, watercolor pens, markers, and highlighters.
16. The earnings will also be used to fulfill general corporate objectives.
17. Reserved Shares: Employees of Doms Industries are reserved up to INR 5 crore.
18. After that, 75% of the shares are reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.
19. Allotment of Doms Industries shares is expected to take place on 18th December.
20. The shares may be listed on BSE and NSE on 20th December.
21. JM Financial, BNPP Paribas, ICICI Securities, and IIFL Securities are the merchant bankers for this issue, while Link Intime India is the registrar.
22. In the financial year 2022-2023, Doms’ net profit increased by 567.2% to INR 95.8 crore on an annual basis.
23. The company’s operating revenue increased by 77.3% to INR 1,212 crore on an annual basis.
24. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 149% to INR 186.7 crore on an annual basis.
25. During April-September 2023, the company recorded a revenue of INR 761.8 crore and a net profit of INR 70.63 crore.

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