Investors make a beeline for Doms, issue subscribed 93x

• QIB investor portion of the issue was subscribed over 115 times.
• Retail and NII portions were subscribed over 60 times each.
• The company raised ₹537.7 crore from 55 anchor investors ahead of the issue.

Stationery maker Doms’ initial public offer (IPO) was subscribed 93 times the shares on offer on Friday. The ₹1,200 crore offer saw stellar participation from all classes of investors.

Qualified Institutional Buyer (QIB) portion of the issue was subscribed 115 times the shares on offer. Retail investor portion was subscribed 69 times, and non-institutional investor (NII) portion was subscribed 66x.

The issue had a price band of ₹750-790 per share. The company raised ₹537.7 crore from 55 anchor investors before opening it for the public.

The issue is a combination of fresh equity to the tune of ₹350 crore and offer for sale component is at around ₹850 crore. The company intends to use net proceeds from the fresh issue to set-up a new manufacturing facility in addition to general corporate purposes.


Source: BSE

Dominant player with high brand recall

The Gujarat-based stationery and art product maker is one of India’s largest such players with a wide distribution reach. It has a 12% market share in the organized stationery market with around 30% share in pencils and ‘mathematical instrument boxes’.

“Doms in a different league altogether. Its distribution is good, and has shown a phenomenal growth since the Covid pandemic and its fundamentals are in place,” Arun Kejriwal, founder at Kejriwal Research & Investment Services, tells Business Insider India.

It also sells other scholastic stationery, art material, paper stationery, office supplies and more.

“They have the widest breadth of product categories amongst their peers in India. Their presence across multiple categories and price points has enabled them to be the fastest growing such company in terms of revenue,” said a report by Anand Rathi.

Its listed peers in the market are Kokuyo Camlin, Linc and Pidilite Industries.

It is also expanding internationally and has forged a joint venture with Italian multinational company FILA. It gives them access to international markets, and also augments their R&D and technological capabilities.

“Their symbiotic association with FILA, based on mutual synergies, has resulted in expansion of their international footprint in key American and European markets and has helped in the global distribution of ‘Doms’ brand,” said a report by Axis Capital.