Doms Industries Ltd.'s initial public offering was fully subscribed on the first day on Wednesday, led by retail investors.
The IPO was fully subscribed within an hour. It has been subscribed 3.88 times as of 2.48 p.m.
The pencil maker's Rs 1,200-crore maiden public issue was priced in the range of Rs 750–790 per share and it will conclude on Dec. 15.
The IPO consists of a fresh issue of 44.3 lakh shares, aggregating up to Rs 350 crore, and an offer for sale of 1.08 crore shares, aggregating up to Rs 850 crore by promoters.
The company aims to use the proceeds to finance the cost of establishing a new manufacturing facility to expand production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters, and general corporate purposes.
Here's What Brokerages Have To Say
Commendable Performance
Doms Industries has demonstrated commendable performance over the past three years, marked by significant growth in revenue and profitability. The company's remarkable turnaround from losses in financial year 2021 to substantial profit in fiscal 2022 has propelled its financial standing, according to StoxBox.
Despite the fully priced price-to-earnings ratio, there are notable advantages that Doms Industries brings to the market, including market leadership, a strong brand presence, established international partnerships and a foothold in the export market, it said in a note.
Presence Across Multiple Price Points
Doms Industries has the widest breadth of product categories among peers in India and is also one of the few stationery & art-material products companies globally with such a wide product breadth. Wide product categories and presence across multiple price points has resulted it to be the fastest-growing stationery & art-material products company in India in terms of revenue over fiscal 2020–23, according to Choice Equity Broking.
"To continue its growth momentum, Doms has recently diversified into the manufacturing of ball-point pens and refills. The company is also in the process of expanding its fine-art product range," it said in a note.
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