Doms Industries IPO: The business plans to earn Rs 1,200 crore with a maiden public offering that consists of the promoters’ offer to sell Rs 850 crore worth of shares and a new issue of shares valued at Rs 350 crore.
Participants in the initial public offering (IPO) of stationery and art products manufacturer Doms Industries have responded overwhelmingly, even on the second day of bidding on December 14. According to subscription data released by exchanges, the issue has been subscribed 12.51 times, with investors purchasing 11.05 crore shares against the IPO size of 0.88 crore.
The portion allocated for eligible institutional purchasers was subscribed to 83% of the time, with retail investors continuing to lead the way with 36.13 times the authorized quota, followed by high net worth individuals with 20.02 times the shares purchased against the reserved portion.
Employee involvement was particularly robust, as they purchased 15.69 times the allotted amount.
The Umbergaon-based company has set aside shares valued at Rs 5 crore for its workers, who will receive shares at a final issue price reduction of Rs 75 per share. The workers’ share was not included in the net offer size.
Furthermore, eligible institutional purchasers have reserved 75% of the net offer amount, high net worth individuals have reserved 15%, and retail investors have reserved the remaining 10%.
Doms Industries, which derives 70% of its revenue from the scholastic stationery and art material divisions, plans to raise Rs 1,200 crore with a debut public offering that entails the promoters’ offer to sell Rs 850 crore worth of shares in addition to a fresh issuance of shares valued at Rs 350 crore.
On December 12, one day prior to the issue opening, institutional investors such as Abu Dhabi Investment Authority, Fidelity Funds, Goldman Sachs, SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sun Life Trustee, Axis Mutual Fund, and ICICI Prudential Life Insurance Company already purchased shares in the company through the anchor book.
Given its strong market share in the core business, strong financial performance, and strong brand presence—even though the valuations are high compared to listed peers—the stationery and art material brand DOMS operator shares traded at more than a sixty percent premium in the grey market, according to analysts speaking on condition of anonymity.
The grey market is an unauthorized trading mechanism for IPO shares until they are listed.
