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Business News/ Markets / Stock Markets/  DOMS share price plunges 8% amid profit booking after a stellar debut
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DOMS share price plunges 8% amid profit booking after a stellar debut

DOMS Industries shares were listed at a 77.2% premium at ₹1,400 apiece on the NSE and the BSE against an issue price of ₹790, on December 20.

DOMS Industries IPO received a strong response from investors during December 13 to December 15 as the public issue was subscribed 93.52 times.Premium
DOMS Industries IPO received a strong response from investors during December 13 to December 15 as the public issue was subscribed 93.52 times.

DOMS share price plunged over 8% in early trade on Thursday, a day after the stock made a stellar Dalal Steet debut. DOMS shares fell as much as 7.99% to 1,224.40 apiece on the BSE.

On December 20, DOMS Industries shares were listed with a hefty premium of 77.2% at 1,400 apiece on the NSE and the BSE against an issue price of 790.

DOMS Industries IPO received a strong response from investors during December 13 to December 15 as the public issue was subscribed 93.52 times. The IPO received bids for 82.64 crore shares as against an IPO size of 88.37 lakh. 

On the listing day, DOMS Industries share price ended at 1,302.95 on NSE, a 65% premium to the IPO price, and at 1,330.85 on BSE, a premium of 68.46%.

Read here: DOMS Industries share price ends at 1,303 about 65% premium to IPO price on NSE

However, the closing price on December 20 was almost 7% lower than listing price on NSE, and nearly 5% down on BSE.

Analysts had suggested short-term investors to book profit in DOMS shares after bumper listing, while long-term investors could hold the stock given strong fundamentals. 

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“The issue came at a P/E of 43x, which was fully priced. Thus, considering such a premium on listing, allottees who applied for the public offering for listing premium are advised to book profit however investors with long-term view may hold it by keeping a stoploss at 1,260. A fresh buy will not be recommended at such a high level," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

DOMS Industries' strong brand, diverse product portfolio, and robust manufacturing position it well for continued growth. Multi-channel distribution and strategic partnerships expand its reach, Nyati added.

Also Read: INOX India share price debuts with 44% premium at 949.65 on NSE

DOMS has demonstrated impressive financial growth in recent years, solidifying its market position and future potential.

At 9:40 am, DOMS Industries share price was trading 3.93% lower at 1,278.55 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 21 Dec 2023, 09:32 AM IST
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