DOMS Industries IPO: Shares List Over 77 Per Cent In Debut Trade

Shares of pencil maker DOMS Industries Ltd made a stellar market debut on Wednesday, listing with a huge premium of over 77 per cent, against the issue price of Rs 790. The stock listed at Rs 1,400 on both the BSE and NSE, reflecting a rise of 77.21 per cent from the issue price. The stock later jumped 79.30 per cent to Rs 1,416.50 on the BSE, while 79.11 per cent to Rs 1,415 at NSE.

During morning deals, DOMS Industries commanded a market valuation of Rs 8,622.14 crore. The initial share sale of DOMS Industries got 93.40 times subscription on the final day of bidding on Friday, driven by overwhelming participation from institutional buyers.

The stationery and art products maker, which gets 70 per cent of its business from scholastic stationery and art material segments, raised Rs 1,200 crore from the public issue (IPO). The IPO was subscribed 93.52 times with investors buying 82.64 crore shares against an IPO size of 88.37 lakh, as per exchange data.

Retail investors had bought 69.65 times the allotted quota followed by high net-worth individuals who picked up 66.51 times their reserved portion. The part set aside for qualified institutional buyers was booked 115.97 times.

The Rs 1,200-crore IPO had a fresh issue of up to Rs 350 crore and an offer for sale of Rs 850 crore. The price range for the offer was Rs 750-790 a share.

Funds raised through the fresh issue would be used for setting up a new manufacturing facility to expand the company’s production capabilities for a range of writing instruments, watercolour pens, markers and highlighters as well as for general corporate purposes.

DOMS Industries clocked a net profit of Rs 95.8 crore, an increase of 567.2 per cent YoY for the year ended March FY23 and revenue jumped 77.3 per cent to Rs 1,212 crore. In the six-month period ended in September FY24, the firm logged a net profit of Rs 70.63 crore on revenue of Rs 761.8 crore.