DOMS IPO: Review, Date and Details
The excitement around the DOMS IPO is palpable, and I’m here to dive deep into what’s stirring up the investment world. With a whopping Rs 1,200 crore on the line, this book-built issue has caught the attention of investors nationwide. It’s a mix of fresh equity and an offer for sale, promising a significant shake-up in the market.
As the subscription numbers roll in, we’re seeing an overwhelming response, especially from retail investors who’ve subscribed over four times their reserved equity. I’ll break down the frenzy behind these figures, the implications for potential shareholders, and what to expect moving forward. If you’re keen on understanding the buzz and the investment potential of DOMS IPO, you’re in the right place. Let’s get started.
DOMS IPO Details
In the bustling world of initial public offerings, specifics matter as much as the excitement they stir. I’ve taken a closer look at the DOMS IPO, and here’s what potential investors need to know.
The IPO unfolded over a three-day period, from December 13, 2023, to December 15, 2023. With the Face Value pegged at ₹10 per share, the price range was set between ₹750 to ₹790 per share, making it accessible yet signaling strong value propositions. Each investor had to bid for a minimum of 18 shares, constituting a lot, with the leverage to buy in multiples thereof.
The IPO was structured as a Book Built Issue, indicating a demand-based price formation. The details are as follows:
| Total Issue Size | Fresh Issue | Offer for Sale |
|---|---|---|
| 15,189,873 Shares | 4,430,380 Shares | 10,759,493 Shares of ₹10 |
| (Aggregating up to ₹1,200.00 Cr) | (Aggregating up to ₹350.00 Cr) | (Aggregating up to ₹850.00 Cr) |
Employees lucky enough to be part of the company pre-IPO were offered a discount of Rs 75 per share, creating an additional incentive to invest.
The pivotal moments post-IPO are the listing dates, and this is where the share’s fate in the open markets begins to take shape. My eye’s been on the listings at the eminent BSE and NSE, which play a critical role in dictating liquidity and price discovery for new entrants.
From a shareholder’s standpoint, the equity dilution is a point to ponder. Pre-issue, the shareholding stood at 56,250,218, but after the dust settled, it swelled to 60,680,598, an increase that investors should note.
The offer’s broken down into an impressive ₹850 crore through the Offer for Sale (OFS) and a sizeable ₹350 crore from the Fresh Issue part. This dual structure often helps in establishing a balanced path for both, company’s growth funding and allowing current shareholders to partly or fully exit their investment.
DOMS IPO Dates
When it comes to IPOs, timing is everything. DOMS Industries Limited took this to heart with their meticulously planned IPO schedule. The opening bell for the DOMS IPO rang on Wednesday, December 13, 2023, marking the beginning of an exciting phase for the company and potential investors alike.
The window for placing bids was narrow, keeping market anticipation high. Investors had until 5 PM on December 15, 2023, to confirm their UPI mandates, bringing the bidding process to a strict close. It’s crucial to respect these deadlines to avoid missing out on investment opportunities, and I made sure to mark my calendar with these key dates.
Following the close date, the company moved swiftly with the Basis of Allotment set for Monday, December 18, 2023. Allotment is a critical phase as it determines who gets a share of the pie and I stayed on top of the process to ensure I was in the loop. The very next day, December 19, 2023, was slated for the initiation of refunds as well as the much-anticipated credit of shares to successful investors’ demat accounts.
Finally, the ringing of the second bell: the DOMS IPO Listing Date. Slated for Wednesday, December 20, 2023, this is when the shares make their first public appearance on the BSE and NSE. I’ve found that the listing date often sets the tone for the stock’s performance on the open markets, and it’s a day marked with high expectations and intrigue.
Here’s a quick snapshot of the IPO timeline:
| Event | Date |
|---|---|
| IPO Open Date | Wednesday, December 13, 2023 |
| IPO Close Date | Friday, December 15, 2023 |
| Basis of Allotment | Monday, December 18, 2023 |
| Initiation of Refunds | Tuesday, December 19, 2023 |
| Credit of Shares to Demat | Tuesday, December 19, 2023 |
| Listing Date | Wednesday, December 20, 2023 |
| Cut-off Time for UPI Mandate Confirm | 5 PM on December 15, 2023 |
DOMS IPO Lot Size
When considering an investment in the DOMS IPO, it’s vital to have a clear understanding of the lot size and the associated investment amount required. The term “lot size” refers to the smallest number of shares an investor can bid for. In the case of the DOMS IPO, one lot comprises 18 shares. For retail investors looking to make an entry, the investment starts modestly with an amount of ₹14,220 for the minimum one lot.
However, for those who are looking to invest more extensively, the IPO scales up to accommodate larger investments. Retail investors have the option to apply for up to 14 lots, translating into 252 shares, which requires an investment of ₹199,080. This tiered system allows individual investors to scale their investments based on their financial capacity and risk appetite.
The DOMS IPO also delineates specific categories for High Net-worth Individuals (HNIs), which are divided into two distinct brackets: small HNIs (S-HNIs) and big HNIs (B-HNIs). An S-HNI can enter the IPO with a minimum investment for 15 lots, which amounts to 270 shares and a corresponding amount of ₹213,300. On the higher end, S-HNIs can bid for as much as 70 lots or 1,260 shares, requiring a significant amount of ₹995,400.
For B-HNIs, the minimum threshold is set higher at 71 lots, equating to 1,278 shares for an investment of ₹1,009,620. It’s clear that the DOMS IPO is structured to cater to a wide range of investors, from those dipping their toes in the stock market waters to the more seasoned investors looking to make a substantial commitment.
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 18 | 14,220 |
| Retail (Max) | 14 | 252 | 199,080 |
| S-HNI (Min) | 15 | 270 | 213,300 |
| S-HNI (Max) | 70 | 1,260 | 995,400 |
| B-HNI (Min) | 71 | 1,278 | 1,009,620 |
DOMS IPO Promoter Holding
When analyzing an IPO, one of the most critical aspects to consider is promoter holding, as it provides insights into the level of confidence and commitment the promoters have in the company’s success. Before DOMS Industries Limited announced its IPO, the promoters had a complete grip on the company’s shares with a 100% pre-issue shareholding. This indicates full control and belief in the company’s direction and prospects.
As the DOMS IPO was initiated, the shareholding structure underwent a change. Post the IPO, the promoters’ holding is expected to decrease, resulting in a 74.97% post-issue shareholding. It’s crucial to note this transition because it reflects the promoters’ willingness to share company ownership with public investors while still retaining a significant majority stake. This balance can be perceived positively as it allows for additional capital inflow without diluting the promoters’ decision-making power substantially.
The promoters of DOMS Industries, namely Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya, and Fabbrica Italiana Lapis ed Affini S.p.A, have strategically planned this shareholding structure. Their names resonate with a certain level of trust and expertise within their domain. This trust is often transferred to the IPO and can potentially bolster investor confidence.
Investors typically view a high promoter holding as an indicator of the promoters’ belief in their company’s potential for growth. Thus, a decrease from 100% to 74.97% in promoter shareholding still leaves them with substantial skin in the game, while also complying with market regulations for minimum public shareholding. This balance could possibly strike an ideal mix of corporate control and liquidity in the market, presenting DOMS Industries as an opportunity that retain its core leadership while inviting public participation.
DOMS IPO Anchor Investors Details
Delving into the specifics of the DOMS IPO, the anchor investors segment is crucial for understanding the stock’s early performance indicators. Anchor investors play a strategic role in an IPO by providing funds and showcasing confidence in the company’s potential. For DOMS Industries Limited, the anchor portion was a substantial aspect of their recent public offering.
On December 12, 2023, the bid date was set for the anchor investors, marking a significant prelude to the opening of the IPO. A total of 6,806,961 shares were offered specifically to this group, representing a strong vote of confidence from institutional investors even before the shares were accessible to the general public.
The capital raised through anchor investors amounted to a substantial 537.75 crore INR. This figure isn’t just a number; it’s a testament to the trust these seasoned investors have in the future of DOMS. With such a heft of funds secured, one can gauge the level of anticipation and positive sentiment surrounding the IPO.
Another interesting component is the anchor lock-in period. Typically set to prevent a sell-off that could destabilize the stock price post-IPO, DOMS Industries enforced a lock-in for anchor investors. But instead of one blanket period, they segmented it. 50% of the anchor investor shares will see the end of their lock-in period on January 30, 2024, with the remaining shares being held until April 23, 2024. This dual-phase lock-in approach balances early liquidity with a controlled release of shares into the market, aiming to foster price stability.
These strategic financial moves not only secure upfront investment but also help temper volatility post-IPO, paving the way for a more measured trading environment. For potential investors keeping a close eye on the stock, understanding this dimension of anchor investors can provide key insights into the level of institutional backing and the possible price movements in the near term.
DOMS IPO Reservation
When the doors swung open to DOMS Industries’ IPO, the reservation of shares was well strategized, reflecting a structured approach to investor inclusion. Qualified Institutional Buyers (QIBs) were allotted a significant share at 75% of the overall allotment, accentuating the confidence and institutional support toward this offering. The fervor amongst retail investors was palpable, leading to an impressive subscription rate on the very first day.
Retail investors, a key force in the vibrancy of any IPO, were observed rallying with their portion getting subscribed 19.16 times on day 1. This not only demonstrates their enthusiasm but also their belief in the long-term prospects of DOMS Industries. As I monitored the progression, it became clear that the retail portion catalyzed a kinetic energy that resonated well into the second day, witnessing a spike to 44.71 times subscription.
DOMS Industries IPO Reservation Overview
| Investor Category | Shares Offered | % of Total | Maximum Allottees |
|---|---|---|---|
| Total Shares Offered | 15,126,581 | 100% | NA |
| Anchor Investors | 6,806,961 | 45.00% | NA |
| QIBs | 4,537,975 | 30.00% | NA |
| NIIs | 2,268,987 | 15.00% | NA |
| Retail Investors | 1,512,658 | 10.00% | 84,036 |
The template for share distribution was methodically carved to also cater to Non-Institutional Investors (NIIs) with a cap of 15%, further diversified into bNII and sNII segments. For perspective, bNIIs (bets greater than ₹10L) received 10.00% and sNIIs (stakes less than ₹10L) were allocated 5.00%. This detailed segmentation facilitated a more equitable and comprehensive investor participation.
About DOMS Industries Limited
Founded in 2006, DOMS Industries Limited has grown to become the second largest player in India’s branded stationery and art products market. With a robust product line that includes items like pencils, pens, markers, and art supplies, it’s clear that they’ve made a firm impression on both the young and old who relish quality stationery products. The range extends to wax crayons, erasers, sharpeners, plastic scales, glitters, and geometry boxes – essentials for school-going children and art enthusiasts alike.
My experience tells me that one of the company’s strengths lies in its vast distribution network, which has fortified its presence across the country. Their expansive distribution is not just a testament to the company’s operational proficiency but also its deep understanding of the Indian market’s nuances and requirements.
The heart of DOMS Industries’ operations is in Umbergaon, Gujarat, where it operates 13 manufacturing facilities. This substantial manufacturing base underscores the company’s commitment to self-reliance and ensures that quality control remains firmly in-house. Moreover, the dedicated sales team, comprising over 500 personnel, is a significant force driving brand penetration and product accessibility throughout India.
Launching an IPO with a total issue size of INR 1200 crores, which includes an offer for sale of INR 850 crores and a fresh issue of equity shares, demonstrates the company’s ambition to bolster its growth further. The decision to go public comes at a time when investing in companies that provide everyday essentials could be seen as a stable bet against market volatility.
Notably, the IPO opens for subscription on December 13, 2023, and will close shortly after on December 15, 2023. With the listing date pegged for December 20, 2023, potential investors have a tangible opportunity to be part of DOMS Industries’ growth story. My analysis indicates that the strong institutional support reflects the confidence in the company’s outlook, which is further reinforced by the enthusiastic response from retail investors.
DOMS IPO Review
During my analysis of DOMS Industries Limited’s IPO, several aspects caught my attention. As an experienced market observer, I’ve been particularly interested in the financial health and growth trajectory of companies going public. DOMS has shown a noteworthy performance over the past three years, with improved revenues, profitability, capital efficiency, and a commendable decrease in debt levels. These financial indicators are of paramount importance when considering an investment in their upcoming IPO.
After a deep dive into the company’s financials, I can see their diverse product range has played a significant role in stabilizing their revenue streams. As a market enthusiast, I know that diversification can lead to sustainability, a critical aspect for investors who are looking for long-term holdings in a volatile market. This broad spectrum of products may well underpin DOMS’s ability to navigate market fluctuations with resilience.
IPO Details at a Glance
| Particular | Details |
|---|---|
| Issue Size | INR 1,200.00 Crores |
| Fresh Issue | INR 350.00 Crores |
| Offer for Sale | INR 850.00 Crores |
| IPO Open Date | December 13, 2023 |
| IPO Close Date | December 15, 2023 |
| Listing Date | December 20, 2023 (Tentative) |
| Basis of Allotment | December 18, 2023 |
| Credit of Shares | December 19, 2023 |
The process to apply for this IPO has been made straightforward, catering to both seasoned and novice investors alike. Through platforms like Zerodha, investors can apply with ease, ensuring a smooth transition from application to the potential allotment of shares. It’s essential to note that the cut-off time for UPI mandate confirmation ends at 5 PM on the last day of the IPO, which is December 15, 2023.
In my experience, the book-built issue managed by reputed lead managers such as Jm Financial Limited and BNP provides a layer of assurance due to their expertise in the field. Their involvement in the process underscores the potential that this IPO represents, not just for the company but also for the investing community at large.
Positives and Negatives
When examining the bright spots, DOMS Industries stands out as a confident market leader. I’m particularly impressed by their commanding 30% market share in the pencil segment, underscoring their dominance. Here’s a snapshot of the financial highs:
- Earnings Per Share (EPS) has seen an uptick from a negative value in 2021 to a robust 1829 in 2023.
- The Net Asset Value (NAV) per Equity Share has been climbing, hinting at a growing net worth beneficial for investors.
- An increase in total assets signals ongoing growth and expansion, with liabilities not spiking alarmingly in relation.
| Year | EPS | NAV per Equity Share |
|---|---|---|
| 2021 | -107 | Not Provided |
| 2023 | 1829 | Not Provided |
Their strong brand and extensive distribution network can’t be overlooked either, along with a formidable management team that underpins their strategy.
On the other side of the ledger, concerns bubble up over their 93% capacity utilization, presenting a possible cap on swift growth. The three-year wait to enhance capacity and intense competition inject an element of uncertainty about their climb in the future.
Furthermore, with the impending IPO presenting an offer for sale (OFS), fresh funds aren’t injected into the company, which could potentially lead to equity dilution.
Zooming out to a panoramic view of risks, product concentration raises an eyebrow. A considerable slice of gross product sales rides on key products, particularly wooden pencils, which, if wavered, could tilt the company’s financial scales.
In rounded figures, a Look at product sales as a percentage of total gross product sales over recent fiscal years accentuates this point:
| Fiscal Year | Wooden Pencils (%) | Key Products (%) |
|---|---|---|
| 2021 | 33.99 | 60.23 |
| 2023 | 32.49 | 62.12 |
This data reflects a consistent reliance on wooden pencils—a potential vulnerability if demand shifts. But parallel to that, the affiliation with FILA could be the cushion needed, offering an entrée to global markets and fresh product insights.
Financials
When exploring an IPO like DOMS Industries Limited, it’s crucial to scrutinize the financial health of the company, which often speaks volumes about its operational efficiency and market potential. DOMS has demonstrated a steady increase in assets over the past few years. From a reported ₹457.52 crore in March 2021, the company’s assets have climbed to a handsome ₹829.46 crore by September 2023, underscoring a definitive growth trajectory.
This asset growth correlates with a similar upswing in revenue. The jump from ₹408.79 crore in March 2021 to a substantial ₹764.22 crore by September 2023 can’t be ignored. Such figures reflect the company’s capability to enhance its market presence and improve its sales year on year. Here’s a snapshot of DOMS’ financial progression:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets (₹ Crore) | 829.46 | 639.78 | 497.46 | 457.52 |
| Revenue (₹ Crore) | 764.22 | 1,216.52 | 686.23 | 408.79 |
| Profit After Tax (₹ Crore) | 73.91 | 102.87 | 17.14 | -6.03 |
While assets and revenues are surging, the profit after tax (PAT) also tells a story of resilience and recovery. Seeing the PAT escalate from a loss of ₹6.03 crore in March 2021 to a profit of ₹73.91 crore by September 2023 is a testament to DOMS’ administrative and operational dexterity.
In juxtaposition, the company’s net worth has not been left lagging. There’s been a substantial reinforcement from ₹233.61 crore in March 2021 to ₹397.61 crore as reported in September 2023. When you delve into the reserves and surplus, the numbers paint a picture of stability and foresight in financial management.
Risk Considerations
As I delve deeper into the intricacies of DOMS Industries Limited’s IPO, it’s crucial to examine the risk considerations that potential investors should be aware of. When considering any investment, it’s important to balance the growth prospects with the inherent risks. In the case of DOMS Industries, there are several factors that I’ve identified as potential risks.
One of the significant concerns is the company’s reliance on its key products. Notably, wooden pencils, which have consistently contributed to more than 30% of gross product sales in recent fiscal years, demonstrate the extent of product concentration. Here’s a breakdown of the percentage of Gross Product Sales attributed to key products:
| Fiscal Year | Percentage |
|---|---|
| 2021 | 60.23% |
| 2022 | 59.06% |
| 2023 | 59.54% |
| Six months ending Sep 30 2023 | 62.12% |
This concentration indicates a vulnerability; should there be any downturn in the sales of these products, it could markedly harm DOMS’ operations and financial health. Mitigating this kind of product concentration risk is something investors should factor into their decision-making processes.
Another point of consideration is the company’s dependence on FILA Group for export sales. With more than 60% of the total export sales tied to a single group, any shifts in this relationship or in FILA Group’s market standing could significantly impact DOMS’ business.
The distribution network also represents a quantifiable risk. With the general trade distribution network accounting for the majority of gross product sales, over 7,000 in each of the last three fiscal years and the first half of the subsequent year, efficient management of this network is critical. Any faltering here could lead to undue disruption in operations and financial outcomes.
While discussing the IPO’s price volatility, it’s also vital to remember that the stationery and art product industry is fiercely competitive. Not only does DOMS face risks from fluctuations in share pricing, but aggressive market competition could also encroach on market share and profitability. Supply chain vulnerabilities, namely raw material dependency on a limited number of suppliers, further complicate the operational environment.
DOMS Industries IPO Subscription Status
The initial public offering (IPO) of DOMS Industries has unquestionably captured the attention of the market, with the subscription status showcasing overwhelming investor confidence. The latest data reflect a particularly strong response across multiple investor categories. Let me share some notable insights:
| Category | Subscription (times) | Shares Offered | Shares Bid for |
|---|---|---|---|
| QIB | 2.09 | 45,37,975 | 95,00,436 |
| NII | 44.50 | 22,68,987 | 10,09,69,092 |
| bNII | 43.10 | 15,12,658 | 6,51,91,266 |
| sNII | 47.30 | 7,56,329 | 3,57,77,826 |
| Retail | 56.81 | 15,12,658 | 8,59,39,020 |
| Total | 23.81 | 83,19,620 | 19,80,81,648 |
A staggering Total Application count of 3,700,346 speaks volumes about the high participation levels. It’s clear that investors are eager to get a piece of DOMS, a sentiment echoed by the Retail segment’s subscription rate of 56.81 times the shares on offer. This robust enthusiasm is a testament to the company’s solid market positioning.
The Non-Institutional Investor (NII) category demonstrated a particularly impressive performance, with subscription rates reaching 44.50 times, split into bids above ₹10L (bNII) at 43.10 times and bids below ₹10L (sNII) at an even higher 47.30 times. This level of interest is indicative of the deep confidence that high net-worth individuals and corporate investors have in the potential of DOMS Industries.
Qualified Institutional Buyers (QIBs) have also shown faith in the company’s prospects, subscribing 2.09 times, a sure sign of professional and institutional validation of DOMS’ growth trajectory.
How to Apply for DOMS IPO?
To invest in the DOMS Industries Limited IPO through Upstox, follow these steps:
- Login to your Upstox account using your six-digit PIN.
- Click on the ‘Discover’ tab after successfully logging in.
- Look for the ‘Invest in IPO’ section on the Discover tab.
- Click on the ‘DOMS Industries Limited IPO’ tab under the Invest in IPO section.
- Fill in all the required information, such as ‘bid price’ and ‘lot size.’
- Confirm and click on ‘Apply.’
- Accept the mandate on your UPI app.
