Gujarat-based DOMS Industries IPO will be the first to mandatorily list on the exchanges in the T+3 timeline as capital markets regulator SEBI directed companies launching IPOS with effect from December 1, 2023 to go for T+3 timeline, instead of the previous T+6 format.

Price Band fixed at ₹750 per equity share to ₹790 per Equity Share of face value of ₹10 each of DOMS Industries Limited (“Equity Shares”) 

• Anchor Investor Bidding Date : Tuesday, December 12, 2023
• Bid /Offer Opening Date : Wednesday, December 13, 2023
• Bid/ Offer Closing Date – Friday, December 15, 2023.
• Bids can be made for a minimum of 18 Equity Shares and in multiples of 18 Equity Shares thereafter.
• The Floor Price is 75 times and the Cap Price is 79 times the face value of the Equity Shares.

MUMBAI, 07 DECEMBER, 2023 (GPN): Doms Industries IPO is set to Open on, December 13, Wednesday. The company’s primary stake sale will conclude on December 15, Friday.

The stationary products brand is looking to raise Rs 1,200 crore through primary route, which includes a fresh share sale of Rs 350 crore and offer for sale (OFS) of Rs 850 by its promoters Fabbrica Italiana Lapis ed Affini SPA, Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani.

The net proceeds from the fresh issue shall be utilized towards partly finance the cost of establishing a new manufacturing facility to expand its production capabilities for a wide range of writing instruments, watercolour pens, markers, and highlighters; and general corporate purposes.

The expansion will be incorporated at Survey Nos: 153, 154, 155/2, 159, 160, 161, 164, 165, 166, 168, 170, 172, 175, 180, 181, 370 and 391/P1, Village: Dehri, Tal: Umbergaon, District Valsad, 396170, Gujarat, India as well as for general corporate purposes.

Earlier this week Italian stationery maker FILA (FILA.MI) said on Monday its Indian unit DOMS Industries had filed an IPO prospectus with the registrar of companies of Gujarat, India, and the offer will be open from Dec. 13 until Dec. 15.

Milan-listed FILA, which holds a 51% stake in the company, is selling shares worth Rs 8 billion ($95.91 million).

After the offer period closes, DOMS shares are expected to start trading by Dec. 31, FILA said to GPN Media.

Incorporated in 2006, DOMS Industries is a stationery and art product company primarily engaged in designing, developing, manufacturing, and selling a wide range of these products under the flagship brand, DOMS.  For the financial year 2022-23, it held 29 per cent and 30 per cent market share, respectively, in pencils and mathematical instrument boxes.

As of March 31, 2023, the company has marked its presence in over 40 countries.  It has a strong, global multi-channel distribution network across the Americas, Africa, Asia Pacific, Europe, and the Middle East. DOMS Industries has an exclusive tie-up with certain entities of the FILA Group for the distribution and marketing of their products in South Asia.

The Offer is being made in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations. This Offer is being made through the Book Building Process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein not less than 75% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the “Anchor Investor Portion”). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”) in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (other than Anchor Investor Portion) (“Net QIB Portion”). Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. Further, (a) not more than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders (“Non-Institutional Portion”) (out of which one third of the Non-Institutional Portion shall be reserved for Bidders with Bids exceeding ₹0.20million up to ₹1.00million and two-thirds of the Non-Institutional Portion shall be reserved for Bidders with Bids exceeding ₹1.00 million) and under-subscription in either of these two sub-categories of the Non-Institutional Portion may be allocated to Bidders in the other sub-category of the Non-Institutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price); and (b) not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders (“Retail Portion”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Account (as defined hereinafter) and UPI ID in case of UPI Bidders (defined hereinafter), which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or the Sponsor Bank(s), as the case may be, to the extent of their respective Bid Amounts. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.

The Equity Shares offered through the red herring prospectus dated December 2, 2023, (the “RHP” or “Red Herring Prospectus”) are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” and together with BSE, the “Stock Exchanges”)

JM Financial Limited, BNP Paribas, ICICI Securities Limited and IIFL Securities Limited are the book running lead managers (“Book Running Lead Managers” or “BRLMs”) to the Offer.