DOMS Industries is into Consumer-Art and Craft stationery and is looking raise funds through Fresh Issue and Offer for Sale
DOMS Industries IPO is a public offering of shares by FILA, Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani and Chandni Vijay Somaiya. The IPO will open on December 13 and will close on December 15. The price band is ₹750 to ₹790 per share and the lot size is 18 shares. The issue size is ₹1,200. crore. The shares are expected to be listed on NSE, BSE on December 20 (^). Some additional information that you may find useful are: Company's core products such as ‘pencils’ and ‘mathematical instrument boxes’ enjoy high market shares; 29% and 30% market share by value in FY23 respectively. Gross Product Sales and revenue from operations having grown at a CAGR of 72.69% and 73.45% respectively from FY21 to FY23. EBITDA Margin (%) having increased from 7.45% to 15.40% over FY21 to FY23, and ROCE having expanded from 0.36% to 33.31% over the same period.: (**) - based on higher price band (^) indicative date
Also READ: DOMS Industries files DRHP with SEBI for the proposed IPO; Key Details here
Promoters of the company are FILA, Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani and Chandni Vijay Somaiya Currently promoters hold 100% stake in the company.
Quick Pointers
- Company aims to raise around Rs 1,200 crs through this IPO.
- The net proceeds of the issue will be utilized to 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
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 12-Dec-23.
- Price band for the IPO has been fixed at Rs 750 to 790 per share and bid lot are in multiple of 18 shares. The implied market cap post-issue at Rs 4,569 to 4,794 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on December 18 and share are expected to be listed on NSE, BSE on December 20.
- Company has direct competition in the stationery and related space with listed players including Kokuyo Camlin Limited, Linc Limited and Pidilite Industries Limited
- JM Financial, BNP Paribas, ICICI Securities, IIFL Securities has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.
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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’.
Company's core products such as ‘pencils’ and ‘mathematical instrument boxes’ enjoy high market shares; 29% and 30% market share by value in FY23 respectively. Gross Product Sales and revenue from operations having grown at a CAGR of 72.69% and 73.45% respectively from FY21 to FY23. EBITDA Margin (%) having increased from 7.45% to 15.40% over FY21 to FY23, and ROCE having expanded from 0.36% to 33.31% over the same period.
About Industry
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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.
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