DOMS Industries IPO subscribed 8.4 times on Day 2 so far; retail portion subscribed 27x

The Rs 1,200 crore-initial public offering (IPO) of DOMS Industries continued to see a bidding interest from the investors during the second day of the bidding process. The issue, which had kicked-off for bidding on Wednesday, December 13, ended the day one with a subscription of 5.72 times.

The Gujarat-based DOMS Industries is selling its shares in the price band of Rs 750-790 apiece with a lot size of 18 shares and its multiples thereafter. The three-day bidding for the IPO will close for bidding on Friday, December 15. The block consists of fresh share sale of Rs 350 crore, and offer-for-sale of up to 10,759,493 equity shares.

According to BSE data, investors made bids for 7,43,43,924 equity shares, or 8.41 times, compared to the 88,37,407 equity shares offered for the subscription by 12.05 pm on Thursday, December 14. The issue will close for bidding on Friday, December 15.

Also read: DOMS Industries IPO subscribed 4 times on Day 1 so far; retail portion booked 14.75x

The allocation for retail investors was subscribed 26.83 times, while the portion reserved for non-institutional investors saw a subscription of 12.72 times. Employees allocation was booked 12.08 times. However, the quota set aside for qualified institutional bidders (QIBs) attracted bids for only 6 per cent of the allocations as of the same time.

DOMS Industries stands as a prominent player in the stationery and art product sector. Specializing in the design, development, manufacturing, and sale of a diverse array of products under its flagship brand, DOMS, the company boasts a global footprint spanning over 40 countries including the Americas, Africa, Asia Pacific, Europe, and the Middle East.

Last heard, DOMS Industries was commanding a grey market premium of Rs 500-510 per shares, signaling an upside of 63-65 per cent compared to the upper end of the price band. However, the premium in the unofficial market was about Rs 450 before bidding for the issue opened.

DOMS has a leadership position in the Indian ‘stationery and art material’ industry with the widest range of products, driving rapid business growth has strong brand recall driven by high quality, innovative and differentiated products with robust manufacturing infrastructure, and a focus on backward integration to drive efficiencies, said Hem Securities with a 'subscribe' tag.

Also read: Stock recommendations by market analysts for December 14, 2023: Asian Paints, Bata India and Indian Energy Exchange

The IPO includes a provision to reserve shares worth Rs 5 crore for eligible employees, who will benefit from a Rs 75 discount per share. Qualified institutional bidders (QIBs) will have a reservation of not less than 75 per cent of the net issue, while non-institutional investors and retail investors will be allocated 15 per cent and 10 per cent of the net issue, respectively.

Despite the fully priced P/E, there are notable advantages that DOMS Industries brings to the market, including market leadership, a strong brand presence, established international partnerships, and a foothold in the export market, said StoxBox. "We, therefore, recommend a 'subscribe' for listing gains rating to the issue," it said.

DOMS Industries successfully raised Rs 537.75 crore through an anchor book. JM Financial, BNP Paribas, ICICI Securities, and IIFL Securities serve as the book running lead managers for the DOMS Industries IPO, with Link Intime India appointed for the issue. The company's shares are anticipated to be listed on both the BSE and NSE exchanges on December 20, Wednesday.

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