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DOMS Industries continues to command a strong premium in the grey market ahead of its much-awaited IPO, which will kick for bidding in two days, that is, Wednesday, December 13, 2023. Despite a mild correction, the premium in the unofficial market remains sturdy ahead of subscription.
Last heard, DOMS Industries was commanding a premium of Rs 440-450 per shares in the grey markets, which is around 55-57 per cent higher than the upper end of its price band at Rs 790 apiece. However, the premium in the black market was around Rs 380-410 when the price band was announced.
DOMS Industries is looking to raise Rs 1,200 crore via its initial stake sale, which is being sold in the range of Rs 750-790 apiece. Investors can make bids for a minimum of 18 equity shares and its multiples thereof, while the bidding for the issue shall close on Friday, December 13, 2023.
The IPO includes a fresh shares sale of Rs 350 crore and offer for sale (OFS) of up to Rs 850 crore by its promoter Fabbrica Italiana Lapis ed Affini SPA, Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani. Anchor books for the issue shall open on Tuesday, December 12, which may also impact the premium in the grey market.
Incorporated in 2006, DOMS Industries is a stationery and art product company primarily engaged in designing, developing, manufacturing, and selling a wide range of these products under the flagship brand named ‘DOMS’ and held 29 per cent and 30 per cent market share, respectively, in pencils and mathematical instrument boxes, for the financial year 2022-23.
DOMS Industries had its presence in over 40 countries by the end of financial year ended on March 31, 2023. It has a strong, global multi-channel distribution network across the America, Africa, Asia Pacific, Europe, and the Middle East. DOMS Industries has an exclusive tie-up with certain entities of the FILA Group for the distribution and marketing of their products in South Asia.
Doms Industries has a leadership position in the Indian stationery and art material industry with the widest range of products, driving rapid business growth with strong brand recall driven by high quality, innovative and differentiated products and a robust manufacturing infrastructure, with a focus on backward integration to drive efficiencies, said Anad Rathi Research in its IPO note.
“It also has a strategic partnership with FILA enabling access to global markets and product know-how. At the upper price band, the company is valuing at P/E of 46 times, EV/EBITDA 15.33 times with a market cap of Rs 4,793.7 crore post issue of equity shares. We believe that valuations of the company are fairly priced and recommend a ‘subscribe for long term’ rating to the IPO,” it added.
DOMS has reserved shares worth Rs 5 crore for its eligible employees, who will get a discount of Rs 75 apiece during the bidding for the issue. 75 per cent of the net issue shall be reserved for qualified institutional bidders (QIBs), while non-institutional investors will have 15 per cent shares allocated towards them. Retail investors will get the remaining 10 per cent shares.
JM Financial, BNP Paribas, ICICI Securities and IIFL Securities are the book running lead managers of the DOMS Industries IPO, while Link Intime India has been appointed as the registrar for the issue. Shares of the company shall be listed on both the exchange- BSE and NSE on December 20, Wednesday.
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Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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