DOMS IPO To Open On 13th December

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As T+3 listing rule has become mandatory from 1st December 2023, the initial public offering (IPO) of DOMS Industries Limited would be one of the first two public issues that will open for subscription on 13th December 2023 i.e. today. Another public issue that will open on 13th December 2023 is India Shelter Finance Limited. DOMS IPO has opened today and it will remain open till 15th December 2023. The company has fixed the DOMS IPO price at ₹750 to ₹790 per equity share.

Meanwhile, DOMS Industries shares are maintaining robust demand in the grey market. According to stock market observers, shares of DOMS Industries Limited are available at a premium of ₹451 in grey market today.

1] DOMS IPO GMP today: According to market observers, DOMS shares are available at a premium of ₹451 in grey market today.

2] DOMS IPO price: The stationery brand has fixed DOMS IPO price at ₹750 to ₹790 per equity share.

3] DOMS IPO date: The public issue has opened today and it will remain open for bidding till 15th December 2023.

4] DOMS IPO size: The stationery company aims to raise ₹1,200 crore from its public offer.

5] DOMS IPO lot size: A bidder will be able to apply in lots and one lot of the public offer comprises 18 shares of the company.

6] DOMS IPO allotment date: After the T+3 listing becomes mandatory from 1st December 2023, the book build issue may finalize share allocation on Monday next week, i.e. on 18th December 2023.

7] DOMS IPO registrar: Link Intime India Private Ltd has been appointed as the official registrar of the upcoming IPO.

8] DOMS IPO listing: The public issue is proposed for listing on BSE and NSE.

9] DOMS IPO listing date: In the wake of the T+3 listing rule, the book build issue may be listed on 20th December 2023.

DOMS IPO review: 

Giving the 'subscribe' tag to DOMS IPO, Rajan Shinde, Research Analyst at Mehta Equities said, "By looking at the financials DOMS has delivered a healthy growth in revenue from operations of 69.71%/77.28% in FY22/23 and substantial profit growth of 500% in FY 2023. We think substantial growth numbers in revenue and profit is seen due to post-COVID pent-up demand and hence we believe the future growth could be seen near to industrial average of 10-12% yoy. On valuation parse at an upper price band of Rs. 790/-, based on annualized earnings and fully diluted post-IPO paid-up capital, the issue is asking for a Market Cap of Rs.4794 Cr with P/E of 32.4x on a consolidated basis, which seems the issue is fully priced-in discounting medium-term growth. In the longer term, we like the company's commitment to product quality, innovation, and pricing strategy in the segment with a high-growth target audience. We also see strong brand presence and multi-SKUs bring sustainable growth in the long run. Hence, considering all the parameters and market momentum, we recommend investors to “SUBSCRIBE" the issue for listing only."

Advising investors to apply for the DOMS IPO, Amit Goel, Co-founder and chief Global Strategist at Pace 360 said, "DOMS industries limited is engaged in design, development, manufacturing, and sales of a wide range of stationery and art products was incorporated in 2006. They are the 2nd largest player in India’s branded ‘stationery and art’ products market, with a market share of 12% by value, as of Fiscal 2023. Their core products such as ‘pencils’ and ‘mathematical instrument boxes’ enjoy high market shares; 29% and 30% market share by value in Fiscal 2023 respectively.  The company expects the Indian domestic writing instrument market to grow at a CAGR of 16% till FY 28. With good scope in paper products, the company plans to expand aggressively in that segment.  The revenue CAGR for the period FY21-23 stood at about 73%. The company operated on an EBITDA margin of 15.5% and PAT margin of 8.50% for year ended FY23.  The company has demonstrated rapid growth over FY21 to FY23 in its topline and bottom-line. Growing demand and company’s expansion plan contribute to the company’s strengths. However, the company’s revenue is still concentrated from its wooden pencil business. The market is still heavily competitive with presence of dominant players," adding, "Considering all the factors, we recommend that investors can apply for the listing gains of around 60% with expected listing price of ₹1,260 to ₹1,300."