DOMS Industries IPO Unveiled: Exploring the Potential of an Established Stationery Giant
Delve into the imminent IPO of DOMS Industries Limited, an esteemed Indian stationery manufacturer boasting a 30% market share and a robust legacy. Explore its financials, strategic objectives, and potential risks, offering investors insights into a well-established brand amid a dynamic market landscape
sonu
Share this Post to earn Money ( Upto ₹100 per 1000 Views )
DOMS Industries Limited, an esteemed Indian stationery manufacturer renowned for its 'DOMS' brand, is set to launch its IPO tomorrow, offering investors a chance to delve into its extensive history and strategic position in the market.
Established in 1976, DOMS holds a substantial 30% market share in key products and has forged a significant partnership with FILA since 2012, solidifying its stature in the stationery and art industry.
The IPO, open from December 13 to December 15, 2023, presents shares priced between Rs. 750 to Rs. 790, with a lot size of 18 shares at Rs. 14,220. Scheduled for listing on December 20, 2023, the issue size stands at Rs. 1,200.00 CR.
In FY 2023, DOMS displayed robust financials, boasting total assets of Rs. 829.46 Crore, revenue of Rs. 764.22 Crore, and a net profit of ₹73.91 Crore as of September 30.
The company's revenue distribution in FY 2023 highlights Scholastic stationery (45.62%), Scholastic art material (26.13%), and Paper stationery (9.95%) as key segments.
The IPO's primary objective revolves around expanding writing instrument production facilities and addressing general corporate needs with the raised capital.
DOMS' promoters, including Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya, and Fabbrica Italiana Lapis ed Affini S.p.A., spearhead its management.
Valued at a price band of Rs. 750 to Rs. 790 per share, the IPO entails a P/E ratio of 43.19, calculated from an EPS of Rs. 18.29.
However, prospective investors should weigh potential challenges, such as concentration risk and possible limitation threats, alongside the company's strengths in brand recognition and global partnerships.
While dividends were distributed in 2022 and 2023, future dividends are contingent upon profits and economic conditions.The current Grey Market Premium (GMP) for DOMS IPO is valued at Rs. 450, showcasing initial market sentiments.
DOMS Industries Limited's IPO presents a well-established entity in the stationery domain, enticing investors with its strong brand and international ties while urging caution regarding inherent risks in the sector
Complete DOMS IPO Analysis.
