DOMS Industries Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹790
Per ShareLot Size
18 Shares
Minimum Investment
₹14,220
Issue Size
₹1,200 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
10%
QIB Quota
75%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Doms Industries Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
89.26%
Promoter Holding (Post-Issue)
65.01%
Issue Type
Book Building
ISIN
INE321T01012
About the Company
DOMS Industries Limited is a holistic creative products company with a leading player and brand in India's 'Stationery and art' products market. We design, develop, manufacture, and sell a wide range of these products, primarily under its flagship brand 'DOMS', in the domestic market as well as in over 40 countries internationally, as of March 31, 2023. Its keen focus on research and development (R&D), product engineering, and backward integrated manufacturing, operations, combined with its multi-channel pan-India distribution network has enabled it to achieve a strong brand recall amongst consumers. Its core products such as `Pencils' and `Mathematical instrument boxes' enjoy high market shares; 29% and 30% market share by value in Fiscal 2023 respectively.
Industry Overview
The global school's (scholastic) stationery product market was valued at USD 61 billion in CY 22. The market is expected to grow at a CAGR of 2.2% during the period CY 22 to CY 27 and is expected to reach approximately USD 68 billion by CY 27. The Indian stationery and art materials market has exhibited continuous growth over the years with an estimated size of INR 38,500 crore by value as of FY 23. The Indian stationery and art materials market is expected to grow at a CAGR of ~13% during FY 23-28 period to reach a market value of INR 71,600 crore by FY 28. The growth of this market can be attributed to factors such as the increasing population, education rate, government policies towards education, and evolving digitalization trends that has aided in the growth of conventional stationery and art materials industry as students are now spending more time in self-studying, drawing, colouring, and doing other hands-on activities. India has a thriving stationery and art materials industry, and there are several opportunities for the country to become an export hub for stationery products. The Indian stationery and art materials exports market is expected to grow at a CAGR of ~6% during FY 23-28 period to reach a market value of INR 7,500 crore by FY 28.
Company History
DOMS Industries Limited was originally incorporated as "Writefine Products Private Limited" as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated October 24, 2006, issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. The name of the Company was subsequently changed to "DOMS Industries Private Limited" and a fresh certificate of incorporation consequent upon change of name was issued by the Registrar of Companies, Gujarat at Ahmedabad ("RoC") on April 21, 2017. Upon the conversion of the Company into a public limited company, pursuant to the approval accorded by its Shareholders at their extra- ordinary general meeting held on July 14, 2023, the name of the Company was changed to "DOMS Industries Limited" and a fresh certificate of incorporation consequent upon change of name upon conversion to public limited company was issued to the Company by the RoC on August 3, 2023.
Products & Services
- The Company designs, develops, manufactures, and sells a wide range of stationery and art products.
Growth Strategy
- Expansion of manufacturing capacities.
- Supplement its product portfolio in order to expand its addressable market size and capture higher consumer wallet share.
- Strengthen its distribution network and expand its modern trade channels.
- Undertake inorganic growth through acquisitions or strategic partnerships.
- Strengthening the `DOMS' brands and enhance synergies.
- Strengthen its technology and data capabilities to drive business efficiencies.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 15,196,510* equity shares of face value of Rs. 10 each ("Equity Shares") of Doms Industries Limited ("The Company" or the "Issuer") for cash at a price of Rs. 790^ per equity share (including a premium of Rs. 780 per equity share) ("Offer Price") aggregating to Rs. 1200.00 crores ("Offer"), comprising a fresh issue of 4,437,018* equity shares aggregating to Rs. 350.00 crores (the "Fresh Issue") and an offer for sale of 10,759,492* equity shares ("Offered Shares") aggregating to Rs. 850.00 crores comprising of 10,126,582* equity shares aggregating to Rs. 800.00 crores by F.I.L.A. - Fabbrica Italiana Lapised Affini s.p.a., 316,455* equity shares aggregating to Rs. 25.00 crores by Sanjay Mansukhlal Rajani, 316,455* equity shares aggregating to Rs. 25.00 crores by Ketan Mansukhlal Rajani (collectively, "Selling Shareholders" and such offer for sale of equity shares by the selling shareholders, "Offer for Sale"). This offer included a reservation of 69,930* equity shares aggregating to Rs. 5.00 crores (constituting 0.12% of the post-offer paid-up equity share capital of the company) for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers, offered a discount of 9.49% (equivalent of Rs. 75 per equity share) to the offer price to eligible employees bidding under the employee reservation portion ("Employee Discount"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitute 25.04% and 24.93%, respectively of the post-offer paid-up equity share capital of the company. *Subject to finalisation of the basis of allotment. ^ A discount of Rs. 75 per equity share was offered to eligible employees bidding in the employee reservation portion.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Leadership position in the Indian `stationery and art material' industry with the widest range of products, driving rapid business growth.
- Strong brand recall driven by high quality, innovative and differentiated products.
- World class manufacturing infrastructure, with a focus on backward integration to drive efficiencies.
- Robust multi-channel distribution network with strong pan India and international presence.
- Strategic partnership with FILA enabling access to global markets and product know-how.
- Product concentration risk - its derived a significant portion (approximately 60%) of the company Gross Product Sales in each of the last three Fiscals from the sale of its key products and a significant portion (more than 30%) of its Gross Product Sales in Fiscal 2023 is attributable to the sale of ooden pencils'. Any decline in the Gross Product Sales of its key products in general or specifically `Wooden pencils' could have an adverse effect on its business, results of operations and financial condition.
- Distribution risk - the company is dependent on its "General Trade" distribution network for a significant portion (more than 70.00%) of its Gross Product Sales in each of the last three Fiscals. Failure to manage its "General Trade" distribution network efficiently could have an adverse impact on its business, results of operations and financial condition.
- Brand and counterfeiting risk - Any deterioration of its brand image, reputation and its consumer's awareness of the company's brand and products could have a material adverse effect on its business, results of operations and financial condition. Further, the availability of look-alikes, counterfeit products, primarily in its domestic market, manufactured by other companies and passed off as its products, could also adversely affect its goodwill and results of operations.
- Dependence on natural resources for raw materials - Some of the raw materials used in its production processes are natural resources and therefore the company is subject to the risk of depletion of such natural resources.
- Supply risk - The company has not entered into any formal contracts or exclusive arrangement with its suppliers from whom its procure materials consumed by it for the company's manufacturing process. Further, its dependent on certain limited suppliers for some of its raw materials. In the event, the company is unable to procure such materials at terms favourable to it, or at all, its business, financial condition and results of operations may be adversely affected.