DOMS Industries files DRHP with SEBI for the proposed IPO; Key Details here

DOMS Industries is into Consumer Art and Craft stationery and is looking raise funds through Fresh Issue and Offer for Sale

DOMS Industries to raise Fresh Issue aggregating up to Rs 350 crores and an Offer for Sale up to Equity Shares through public issue IPO

DOMS Industries IPO: DOMS Industries Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 10 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 350 crores and an Offer for Sale up to Rs. 850 crores.. JM Financial, BNP Paribas, ICICI Securities, IIFL Securities have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 350 Crs andby F.I.L.A.-Fabbrica Italiana Lapis ed Affini S.p.A., Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani who will offload up to Shares aggregating up to Rs. 800 crores, Shares aggregating up to Rs. 25 crores and Shares aggregating up to Rs. 25 crores respectively...

Objects of the issue:
1) Proposing to part finance the cost of establishing a new manufacturing facility to expand its production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters, at Valsad (Gujarat) at cost of around Rs. 280 crores, and 2) General corporate purposes.

About Company:
Company is a holistic creative products company in stationery and art products market. Company design, develop, manufacture, and sell a wide range of products, primarily under flagship brand ‘DOMS’, in the domestic market as well as in over 40 countries internationally. Company's keen focus on research and development (R&D), product engineering, and backward integrated manufacturing, operations, combined with multi-channel pan-India distribution network has enabled to achieve a strong brand recall amongst consumers. Core products such as ‘pencils’ and ‘mathematical instrument boxes’ enjoy high market shares; 29% and 30% market share by value in Fiscal 2023 respectively (Source: Technopak Report). Company's other brand/sub-brands including ‘C3’, ‘Amariz’, and ‘Fixyfix’.

About Industry:
The global school’s (scholastic) stationery product market was valued at USD 61 billion in CY 22. The market is expected to grow at a CAGR of 2.2% during the period CY 22 to CY 27 and is expected to reach approximately USD 68 billion by CY 27. The growth of this market can be attributed to factors such as the increasing population, education rate, government policies towards education, and evolving digitalization trends that has aided in the growth of conventional stationery and art materials industry as students are now spending more time in self studying, drawing, coloring, and doing other hands-on activities.

Source: SEBI, BSE, NSE, DRHP, Company, Industry Data

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