DOMS Industries Limited is coming up with an IPO of INR 1200 crores. The offer consists of an offer for sale of INR 850 crores and a fresh issue of equity shares worth INR 350 crores. The company intends to use the funds raised for a new manufacturing facility.

DOMS Industries Limited IPO – Important Details

Doms Industries Ltd IPO  – Company Profile

The company is a leading player in stationery and art products. The company designs, develops, manufactures, and sells a wide range of these products, primarily under the flagship brand ‘DOMS,’ in the domestic market and over 40 countries internationally as of March 31, 2023. The core products such as pencils and mathematical instrument boxes enjoy high market shares, 29% and 30% market share by value in Fiscal 2023, respectively.

In 1973, the company’s promoters, the late Rasiklal Amritlal Raveshia and the late Mansukhlal Jamnadas Rajani, started manufacturing and selling pencils and crayons. Subsequently, in 2012, the company entered a strategic partnership with FILA, a listed Italian multinational company.

The company undertakes manufacturing operations in Umbergaon, Gujarat, and Bari Brahma, in Jammu and Kashmir. The flagship brand ‘DOMS’ markets the products and other brand/sub-brands, including ‘C3,’ ‘Amariz,’ and ‘Fixyfix.’

Doms Industries Ltd IPO – Fundamental Analysis

Doms Industries Ltd has undergone a significant improvement in financial performance, exhibiting strong revenue growth, enhanced profitability, and efficient utilization of resources.

Revenue Growth: 

Doms Industries has shown significant growth in revenue over the years. From ₹4,028.17 million in 2021, it increased to ₹12,118.90 million in 2023, indicating strong revenue growth.

Expenses:

 While revenue has been growing, expenses have also increased over time. However, the gap between revenue and expenses has narrowed, suggesting improved cost management.

Profitability: 

The company has demonstrated a turnaround in profitability. After reporting losses in 2021, it moved to a profit of ₹164.15 million in 2022 and a substantial profit of ₹4,163.66 million in 2023. This signifies a positive trend in the company’s operations.

Return on Net Worth (RoNW): 

The RoNW has remarkably improved, from a negative percentage (-3.86%) in 2021 to 28.39% in 2023. This indicates better utilization of shareholders’ funds and increased profitability.

Earnings Per Share (EPS): 

The EPS has been steadily increasing from a negative value of (₹1.07) in 2021 to ₹18.29 in 2023, indicating improved profitability and potential attractiveness for investors.

Net Asset Value (NAV) per Equity Share: 

The NAV per share has also shown an upward trend, indicating an increase in the company’s net worth and a positive sign for potential investors.

Total Assets and Liabilities:

 The total assets have consistently increased, indicating the company’s growth and expansion plans. Meanwhile, liabilities have also risen, but not at a disproportionate rate to assets, which can be considered a positive aspect.

Doms Industries Ltd IPO Financial Information

Doms Industries Ltd IPO Peer Comparison

DOMS Industries records ₹12,118.90M revenue, EPS of ₹18.29, and RoNW at 28.39%. Kokuyo Camlin has a high P/E of 63.75, while Linc shows an EPS of ₹25.15. Pidilite Industries leads with ₹117,991.00M revenue.

DOMS Industries Limited IPO Objective

Doms Industries Limited plans to invest INR 280 crores in establishing a new manufacturing facility in Umbergaon. The company will use the remaining funds for general corporate purposes, including advancing IT, expanding branches, and implementing strategic initiatives.

1. Funding of new manufacturing facility: As a part of its growth strategy, the company envisages setting up a new manufacturing facility at Umbergaon. The company intends to utilize INR 280 crores for this purpose.
2. General corporate purpose: The company plans to deploy the balance funds towards the general corporate goal, which is not limited to meeting expenses incurred in the ordinary course of business such as strategic initiatives, including advancement of information technology, meeting future branch and business expansion, etc.

Doms Industries IPO Risks And Challenges

Doms Industries faces risks due to product concentration, with ‘wooden pencils’ contributing over 30% of 2023 sales, and any decline in key product sales could harm business. Brand reputation and dependence on FILA for exports also pose risks.

1. Product concentration risk: The company derives a significant portion (approximately 60%) of the gross product sales from the sale of critical products, and a considerable amount (more than 30%) of the gross product sales in fiscal 2023 is attributable to the sale of ‘wooden pencils.’Any decline in the sale of any essential product will harm the business, results of operations, and financial condition.

2. Brand and counterfeiting risk – Any deterioration of the brand image, reputation, and consumer awareness could adversely affect the business, operations, and financial condition.
3. Dependence on FILA for export sales – The company depends on the FILA Group for export sales (export sales to FILA group contribute to more than 60% of the total export sales). Any damage to the reputation of the FILA Group may adversely affect the business, results of operations, and financial condition.

Doms Industries IPO – Industry & Market Potential

Several categories classify the global stationery and art materials market: educational stationery, office stationery, pen & writing instruments, stationery adhesives, academic art, fine arts, hobbies & crafts, and printing and writing paper stationery.

In CY 22, the Printing and Writing Paper sector dominates the global stationery and art materials market with approximately 33% market share, while the Scholastic Stationery sector follows closely with around 32% share. By CY 27, it is projected that these two categories will each hold an equal share of about 31%.

On the other hand, the pen and writing instrument segment is expected to experience substantial growth, increasing its market share from 9% in CY 22 to 12% by CY 27.

Doms Industries Ltd IPO  – Type of Offer

Doms Industries Limited plans to expand the facility by raising INR 350 Crore through a Fresh Issue. Additionally, existing shareholders, including F.I.L.A. and others, will sell INR 850 Crore shares.

Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 350 Crore. The funds will be utilized towards expanding the new facility.

Offer For Sale (O.F.S.): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company worth INR 850 crores. The following are the details of the existing shareholders: 

1. F.I.L.A.- Fabbrica Italiana Lapis ed Affini S.p.A.- selling shares worth INR 800 crores
2. Sanjay Mansukhlal Rajani is selling shares worth INR 25 crores.
3. Ketan Mansukhlal Rajani-selling shares worth INR 800 crores

Doms Industries IPO Offer Size

DOMS Industries Limited is launching an I.P.O. totaling INR 1200 crores, comprising an INR 850 crore offer for sale and a fresh issue of INR 350 crores in equity shares. The proceeds will be used to establish a new manufacturing facility.

DOMS Industries Limited IPO Allotment Structure

Doms Industries Limited’s IPO allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) by SEBI regulations.

●  Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

●  Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.

●  Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

How to apply for a DOMS Industries Limited IPO?

To apply for the DOMS Industries Limited IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the DOMS Industries Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.

 You can apply for DOMS Industries Limited IPO at Alice Blue in just a few clicks!

 Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check DOMS Industries Limited IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1.  Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2.  Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3.  Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4.  Select the DOMS Industries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the DOMS Industries Limited IPO.

5.  Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

 Apart from Alice Blue, there are other ways to check the allotment status of the DOMS Industries Limited IPO:

• Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the DOMS Industries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
• NSE and BSE: You can also check the allotment status on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

DOMS Industries Limited IPO Offer Registrar

The registrar for the DOMS Industries Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai – 400 083, Maharashtra

Phone: 022-4918 6200

Email: [email protected]

Website: www.linkintime.co.in

DOMS Industries Limited IPO FAQs

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