DOMS IPO LIVE UPDATES: IPO Subscribed 5 Times So Far, GMP Price, And More

DOMS IPO, as of December 13, 2023, 4:20 PM, has garnered significant attention from investors, with an overall subscription rate of 5 times.

The shares of DOMS Industries are likely to be listed on the bourses on December 20. The stock will be traded on the bourses, BSE and NSE.

DOMS IPO, as of December 13, 2023, 2:43:00 PM, has garnered significant attention from investors, with an overall subscription rate of 4.09 times. 

As of 12:45 PM IST, the subscription status for DOMS Industries IPO is 2.59 times.

As of 11:50 am, the public offering has reached a subscription level of 1.77 times. The retail category has shown remarkable demand, being oversubscribed by an impressive 7.01 times, while the Non-Institutional Investors (NII) portion has received bids that are 1.67 times its allocated quota.

• The company relies on the FILA Group for crucial aspects of its business operations and export sales.
• The company's revenues are heavily dependent on its top products, emphasising a concentrated revenue stream.
• Significant competitive pressures pose challenges to the company within its industry.
• The company has faced losses in previous financial periods.
• Negative cash flows have been observed in preceding financial years.
• Operating in a fragmented industry, the company contends with the presence of unorganised players.

At 11:06 AM, the public offering was oversubscribed by a factor of 1.09. The retail segment demonstrated strong interest with a subscription rate of 4.08, while the Non-Institutional Investor (NII) portion received bids 1.18 times its quota. Notably, there have been no bids from qualified institutional buyers at this point.

• DOMS Industries holds a prominent position in the Indian 'stationery and art material' industry, propelled by a diverse range of products that contribute to its rapid business growth.
• The company benefits from a strong brand recall, attributed to its commitment to delivering high-quality, innovative, and differentiated products.
• DOMS Industries boasts a resilient multi-channel distribution network with a PAN-India presence, ensuring widespread accessibility for its products.
• The strategic partnership with F.I.L.A. not only provides access to global markets but also facilitates the exchange of product know-how, enhancing the company's competitive edge.

FILA is now a promoter entity along with the original promoter group. FILA own 51 per cent before the issue and will retain 31 per cent shareholding post-issue as well, following the OFS (offer for sale) led by FILA stake sale.

DOMS partnered with FILA in 2012, which helped the company expand its presence in the global market with a focus on key American and European markets.

The IPO of DOMS Industries has already been booked by 76% in just 2 hours of opening. 

Retail investors need a minimum investment of Rs 13,500 (18 (Lot size) x 750 (lower price band)) for the DOMS IPO. At the upper end, the bidding amount will increase to Rs 14,220. Non-Institutional Investors (NII) are required to invest in minimum lot sizes, with 15 lots (270 shares) amounting to Rs 2,13,300, and for Qualified Institutional Buyers (QIB), the minimum lot size is 71 lots (1,278 shares), totaling Rs 10,09,620.  

Investors interested in the DOMS IPO are required to apply for a minimum lot size of 18 shares.

As per market analysts, the current Grey Market Premium (GMP) of DOMS Industries is Rs 330 in the unlisted market.

The price range for this public issue has been set at Rs 750-790. At the upper limit of this range, the company aims to raise Rs 1,200 crore. Investors have the option to bid for 18 shares in one lot, and thereafter, they can bid in multiples.

The funds raised through the fresh issue are proposed to be utilised for the part funding of the cost of establishing a new manufacturing facility and for general corporate purposes.

The price band of this public issue is fixed at Rs 750-790, and at the upper end, the company plans to raise Rs 1,200 crore. Investors can bid for 18 shares in 1 lot and multiples thereafter.

The company's revenue from operations fell 41% year-on-year to Rs 403 crore in the financial year 2023. It had clocked a loss of Rs 6 crore in the same period as against a profit a year ago.

The offer is being made through the book-building process, where 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 10% for retail investors.

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DOMS Industries Ltd currently operates in more than 40 countries, showcasing its global presence. The company offers a diverse range of high-quality stationery and art materials, spanning seven categories. These include scholastic stationery, scholastic art materials, paper stationery, stationery kits, office supplies, hobby craft, and fine art products.

Notably, DOMS Industries Ltd has a strategic partnership with the FILA group of Italy, which holds a stake in the company. This collaboration extends to an exclusive tie-up for the distribution and marketing of DOMS Industries' products in South Asia. The company has effectively established an international multi-channel distribution network that spans across the Americas, Africa, Asia Pacific, Europe, and the Middle East, solidifying its global reach and market presence.