DOMS Industries set for ₹12 billion IPO, SEBI grants approval

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DOMS Industries set for ₹12 billion IPO, SEBI grants approval
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DOMS Industries Limited, a Mumbai-based company known for its range of scholastic stationery and office supplies, has received approval from the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) valued at ₹12 billion. The announcement made today indicates that the company is poised for significant expansion, with plans to utilize the funds for establishing new production facilities aimed at broadening its product offerings, including water colour pens.

The IPO consists of a fresh issue amounting to ₹3,500 million and an Offer for Sale (OFS) of ₹8,500 million, with corporate promoter F.I.L.A. S.p.A planning to sell shares worth ₹8,000 million. Additionally, individual stakeholders Sanjay and Ketan Rajani are each expected to divest shares totaling ₹250 million. This strategic move is set to enhance DOMS Industries' manufacturing capabilities, particularly in the writing and coloring tools segment.

The company's decision to go public follows a period of robust revenue growth from Fiscal Year 2020 to 2022. DOMS Industries has successfully captured a significant market share in pencils as indicated by FY23 data. With a multi-channel distribution network that reaches over 115,000 retail points across the nation, the company's presence in the Indian market is extensive.

A consortium of book runners, including JM Financial, BNP Paribas (OTC: BNPQY ), ICICI Securities, and IIFL Securities, is managing the IPO process.

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