DOMS IPO announces price band at ₹750-790 per share: GMP, issue details, more…

DOMS IPO price band : DOMS Industries IPO price band has been set in the range of ₹750 to ₹790 per equity share of face value of ₹10. DOMS Industries IPO date of subscription is scheduled for Wednesday, December 13, and will close on Friday, December 15. The allocation to anchor investors for DOMS IPO is scheduled to take place on Tuesday, December 12.

The floor price is 75 times the face value of the equity shares and the cap price is 79 times the face value of the equity shares. The price to earnings ratio based on diluted EPS for financial year 2023 for the company at the higher end of the price band is as high as 43.19 times and the lower end of the price band is 41.01 times. DOMS Industries IPO lot size is 18 equity shares and in multiples of 18 equity shares thereafter.

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Tentatively, DOMS IPO basis of allotment of shares will be finalised on Monday, December 18 and the company will initiate refunds on Tuesday, December 19, while the shares will be credited to the demat account of allottees on the same day following refund. DOMS IPO shares are likely to be listed on BSE and NSE on Wednesday, December 20. Given that T+3 listing is mandatory as of December 1, 2023, DOMS Industries will be the first mainboard IPO to list on primary markets this month under this norm.

DOMS Industries IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors. A discount of ₹75 per equity share is being offered to eligible employees biding in the employee reservation portion. 

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DOMS Industries IPO details

DOMS Industries IPO comprises a fresh issue of shares of up to ₹350 crore and an offer for sale (OFS) of equity shares with face value of ₹10 each by a promoter and others aggregating up to ₹850 crore. DOMS Industries IPO issue size is ₹1,200 crore.

The net proceeds from the new issue will be used, in part, to pay for general corporate purposes and the cost of building a new manufacturing facility to increase production capacity for a variety of writing instruments, watercolour pens, markers and highlighters.

The book running lead managers (BRLM) of the DOMS IPO are JM Financial Limited, BNP Paribas, ICICI Securities Limited, and Iifl Securities Ltd. The registrar of the DOMS IPO is Link Intime India Private Ltd.

As of September 30, 2023, the company designs, develops, produces, and markets a broad variety of stationery and art products, mostly under its flagship brand, "DOMS," both domestically and in more than 45 countries abroad. The company has achieved a high brand recall among consumers thanks to our multi-channel pan-India distribution network, research and development (R&D), product engineering, and backward integrated manufacturing operations.

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According to the Technopak Report, the company's main products, "pencils" and "mathematical instrument boxes," have significant market shares of 29% and 30% by value in Fiscal 2023, respectively.

Over the last three fiscal years, the company has shown stable financial performance. From Fiscal 2021 to Fiscal 2023, its gross product sales and revenue from operations grew at a compound annual growth rate (CAGR) of 72.69% and 73.45%, respectively. Over the same period, its EBITDA margin (%) increased from 7.45% to 15.40%, and its return on capital employed (ROCE) increased from 0.36% to 33.31%.

DOMS Industries IPO GMP today

DOMS IPO GMP today or grey market premium is +410. This indicates DOMS share price were trading at a premium of ₹410 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of DOMS share price is ₹1,200 apiece, which is 52% higher than the IPO price of ₹790.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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