DOMS Industries IPO: Everyone's eyes are on the IPO of DOMS Industries, the country's second largest pencil and stationery items manufacturing company. The IPO of the company riding on the chariot of profit will be launched on 12th December and it will close on 15th December. Recently, the IPO of another well-known stationery items manufacturing company, Flair, was widely accepted by the people. Therefore, it is expected that the shares of Doms Industries can bring a lot of benefits to the investors.
Doms Industries' revenue is increasing rapidly
The stationery items market is expected to grow at the rate of 16 percent. In such a situation, there is full hope that money will be showered on this IPO. The company's revenue in FY 2022 was Rs 683.6 crore, which increased rapidly to Rs 1212 crore by the end of FY 23. The net profit of the company was Rs 96 crore.
Will become the first company to launch IPO under T+3 rule
The stationery product market in the country is approximately Rs 38 thousand crores. The size of Doms Industries' IPO will be Rs 1200 crore. In this, fresh issue will be Rs 350 crore and offer for sale will be Rs 850 crore. Domes Industries will become the first company to launch an IPO in the stock market in the T+3 timeline. Till now companies use T+6 format for launching IPOs. But, SEBI has implemented new rules from December 1, 2023.
Promoters' stake will be reduced to 75 percent
Doms Industries partner and Italian company Fila (Fabbrica Italiana Lapis ed Affini) will collect Rs 800 crore by selling some of its stake through this IPO. Phila has 51 percent stake in the company. Besides, promoters Santosh Rasiklal Raveshia, Ketan Mansukhlal Rajni, Sanjay Mansukhlal Rajni and Chandni Vijay Somaiya will also make Rs 400 crore by selling their stake. Even after this IPO, the stake of all the promoters including Phila in the company will remain 75 percent.
Company will build a new plant
The company will use the money received from IPO to build a new plant. With this plant the company will be able to increase the production capacity of its products. Recently the company had purchased 40 acres of land for this. At present more than 15 thousand employees work in the company. 10 percent shares have been kept for retail investors in the IPO. Umbergaon town of Valsad district of Gujarat is known as the Pencil Town of the country. Here are the headquarters of two big companies of the country. Hindustan Pencils has 40 percent share of the segment and Doms has 30 percent share.
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