DOMS Industries Limited IPO - Complete Overview

Established in 1976, DOMS is India's fastest-growing stationery products manufacturer. The company has gained recognition for its 'DOMS brand and is a prominent player in the stationery and art market.

DOMS boasts a multi-channel, pan-India network that contributes to maintaining a substantial 30% market share in core product segments like pencils and mathematical instrument boxes. In FY2023, wooden pencils accounted for approximately 37% of their gross product sales. A pivotal moment for DOMS occurred in 2012 when they entered into a strategic partnership with FILA, a listed Italian multinational company, broadening their access to international markets.

Given the anticipated growth in India's education sector, projected to reach $225 billion by FY2025 from $117 billion in FY2020, DOMS is poised for significant revenue expansion. With its extensive reach both in India and globally, DOMS is well-positioned for continued success in the years ahead.

 

What does the company do?

DOMS offers an extensive range of stationery kits, art supplies, and more, distributed in over 40 countries. In India, they provide a diverse array of products at various price points. Alongside their flagship brand 'DOMS,' they have other popular brands such as 'C3,' 'Amariz,' and 'Fixyfix.'

As the second-largest pencil maker in India, DOMS holds a significant position in the industry, trailing only Hindustan Pencils Pvt Ltd. In a strategic move in 2023, DOMS acquired a 30% stake in Clapjoy, a toy maker, marking their entry into a new market segment.

 

Products-

(1) Scholastic stationery 

(2) Scholastic art material 

(3) Paper stationery 

(4) Kits and combos 

(5) Office supplies 

(6) Hobby and craft 

(7) Fine art products.

 

Detailed Video

 

DOMS  IPO Overview

DOMS IPO date is slated to be open for subscription from December 13, 2023, to December 15, 2023. This BSE, NSE IPO follows a Book Built Issue IPO.

The DOMS IPO price band price is fixed at Rs. 750 to Rs. 790 per share. The upcoming BSE, NSE IPO will be listed on December 20, 2023.

The total issue size of this IPO amounts to Rs.1200.00 CR. Within this total issue, 10% is issued to retail investors.

 

DOMS IPO timetable (Tentative)

 

DOMS IPO Details

Doms Industries will issue fresh equity shares worth 350 crores under its IPO. Additionally, there will be a sale offer of 850 crores for existing shares under the Offer for Sale (OFS).

IPO opening & closing date	13 December to 15 December 2023
Face value	Rs.10 per share
Issue Price	Rs. 750 to Rs. 790 per Share
Lot Size	18 Shares
Price of 1 lot	Rs. 14,220
Total Issue Size	15,189,873 Shares (aggregating up to Rs.1,200.00 Cr)
Offer for sale	10,759,493 Shares of Rs.10 (aggregating up to Rs. 850.00 Cr)
Fresh issue	4,430,380 Shares (aggregating up to Rs. 350.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

 

DOMS IPO Lot Details

 

DOMS IPO Reservation

 

 

 

Company Financial

As of September 30, FY 23, the company's total assets are Rs.829.46 Crore, with total revenue at Rs.764.22 Crore and a net profit after tax (PAT) of Rs.73.91 Crore. The company's net worth is Rs.397.61 Crore, including total borrowings of Rs.176.38 Crore.

(Amount in Crore)

Revenue-Distribution Product Wise  

In F.Y. 2023, Scholastic stationery leads with 45.62% of revenue, followed by Scholastic art material at 26.13% and Paper stationery at 9.95%. Kits and combos contribute 8.66%, Office supplies 6.28%, and other categories make up the remaining percentage.

( in % age)

 

Revenue By operations                                                                                        

The revenue for F.Y. 2023 increased by approximately 11.52% compared to F.Y. 2022.
 
(amount in Millions)

 

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Securing funds to expand production with a new facility for various writing instruments.

• Using funds for general corporate needs.

 

Promoters and Management of DOMS IPO

Santosh Rasiklal Raveshia, Sanjay Mansukhlal Rajani, Ketan Mansukhlal Rajani, Chandni Vijay Somaiya and Fabbrica Italiana Lapis ed Affini S.p.A are Promotors of the company.

 

DOMS IPO Lead Managers

• JM Financial Limited

• ICICI Securities Limited

• BNP Paribas

• IIFL Securities Limited 

 

Peers of DOMS IPO

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP and RHP. DOMS  IPO is fixed at Rs. 750 to Rs. 790 per share, with an EPS of Rs.18.29. Based on the issue price the company's P/E ratio is calculated at 43.19.

 

 

Dividend Policy

The company's dividend policy can change based on profits, plans, and economic conditions. While they paid dividends of Rs.55.88 in 2022 and Rs.93.13 in 2023 (amount in millions), it doesn't guarantee future dividends, and there's no certainty about dividends on Equity Shares going forward.

 

IPO's Strengths

• Improved revenues, profitability, capital efficiency, and reduced debt levels in the past three years.
• Doms manages a diverse range of products in its portfolio.
• Established a strong brand name and is supported by an extensive network of domestic distributors and international partners.
• DOMS Industries ranks as the second-largest player in the Indian branded 'stationery and art' market with a market share of approximately 12% by value as of 2023. 
• Market Leadership and Strong Brand Recall 
• Wide Product Range and Global Presence 
• R&D and Innovation Focus Consistent Financial Performance 
• Strategic Partnerships

 

IPO's Weaknesses

• DOMS faces a concentration risk as 30% of its revenue comes from the wooden pencil, a product easily replicated by competitors.
• The potential for imitation poses a threat to DOM's brand, allowing smaller players to use a similar name fraudulently.
• The absence of formal contracts or exclusive supply agreements exposes DOMS to potential disruptions in its supply chain.
• The company is presently entangled in a legal dispute with one of its publicly listed counterparts.
• Concerns arise due to the company's heavy reliance on the FILA Group for both business operations and export sales.
• The company is under pressure from intense competition in its market.
• The company has a history of incurring losses.

 

 

IPO GMP Today

The Latest GMP of DOMS IPO is Rs. 531.

 

Conclusion

In conclusion, DOMS Industries Limited's upcoming IPO presents a comprehensive overview of a company deeply entrenched in India's stationery and art market. With a rich history and a diverse product portfolio, the company has successfully expanded its reach both nationally and internationally. The IPO's strengths lie in the company's improved financials, strong brand recognition, and a strategic partnership with FILA. However, challenges such as concentration risk, potential imitation threats, and supply chain vulnerabilities should be considered. 

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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