Doms Industries Limited Files DHRP With SEBI, Aims To Raise INR 1200 Crore Via IPO The funds raised through the fresh issue are proposed to be utilized for the part funding of the cost of establishing a new manufacturing facility to expand the company's production capabilities
By Teena Jose
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Italian company FILA-backed stationery and art products maker Doms Industries filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) on August 22, with an aim to raise INR 1,200 crore via an initial public offering (IPO).
The public issue comprises a fresh issuance of shares worth INR 350 crore and an offer-for-sale of INR 850 crore by promoters.
The Company's initial public offering aggregating up to INR 12,000 million which comprises a fresh issue aggregating up to INR 3,500 million and an offer for sale aggregating up to INR 8,500 million. The offer for sale comprises equity shares aggregating up to INR 8,000.00 million by corporate promoter, according to an official release.
The company also said that the funds raised through the fresh issue are proposed to be utilized for the part funding of the cost of establishing a new manufacturing facility to expand the company's production capabilities for a wide range of writing instruments, water colour pens, markers and highlighters as well as for general corporate purposes.
Doms Industries, which sells products in the domestic market as well as in over 40 countries, claimed to be enjoying 29% and 30% market share by value in its core products such as pencils and mathematical instrument boxes respectively in FY23.
In the year ended March FY23, the company has posted net profit of INR 102.87 crore, increasing 500% over profit of INR 17.14 crore in previous year. Also, the revenue from operations jumped by 77.3% to INR 1,212 crore in FY23, compared to INR 683.6 crore in previous financial year.
JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities are appointed as merchant bankers for the issue.
