Shares of DOMS Industries will be listed at the bourses today. The company has fixed the issue price at ₹790, at the upper end of the price band, after blockbuster IPO. The issue was subscribed 93.52 times overall, with QIB portion receiving nearly 116 times. Retail investors and non-institutions too subscribed heavily as the respective portions were subscribed 69.67 times and 66.51 times.
May jump over 60%
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said the leading stationery player is all set for a blockbuster debut. “Enthusiasm for the IPO is off the charts, reflected in a sky-high grey market premium (GMP) of ₹495 - a sizzling 62 per cent above the issue price of ₹790,”. she said.
“While the listing promises fireworks, caution is key. The hefty GMP already anticipates much of the company’s future growth, leaving limited immediate gains on the table,” she warned.
Issue details
The IPO comprised a fresh issue of ₹350 crore and an offer for sale (OFS) worth ₹850 crore. Net proceeds of the issue will be used to finance a new facility for a wide range of writing instruments, watercolour pens, markers and highlighters besides general corporate purposes.
Anchor investors
As part of the IPO, the stationery major had raised ₹538 crore from anchor investors who included Abu Dhabi Investment Authority, Optimix Wholesale Global Emerging Markets, Ashoka Whiteoak Emerging Markets, Fidelity Funds, Goldman Sachs, Theleme India Master Fund and Belgrave Investment Fund.
DOMS Industries designs, develops, manufactures, and sells a wide range of stationery and art products in the domestic market as well as overseas in over more than countries. It has 13 manufacturing facilities across Umbergaon, Gujarat.