Doms Industries' Rs 1,200 crore IPO to open soon: Check dates, price, GMP and more details
The IPO also includes a reserved share allotment of up to Rs 5 crore for eligible employees, offered at a discounted price of Rs 75 per share.
Doms Industries, the second-largest pencil maker, announced a price band of Rs 750- 790 for its upcoming initial public offering (IPO), aiming to raise Rs 1,200 crore. The IPO is scheduled to open on December 13 and close on December 15.
The Umbergaon, Valsad-based company outlined the IPO structure, consisting of Rs 850 crore for an offer for sale (OFS) and Rs 350 crore for a fresh issue. The floor price is set at 75 times the face value, with the cap price at 79 times the equity shares' face value. The single largest shareholder, Fila of Italy, will conduct the OFS, selling shares worth Rs 800 crore from its 51 per cent holding. Additionally, promoter families will dilute shares, with Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani each selling Rs 25 crore worth of shares.
The IPO also includes a reserved share allotment of up to Rs 5 crore for eligible employees, offered at a discounted price of Rs 75 per share.
The Grey Market Premium (GMP) of Doms Industries IPO is Rs 468, last updated on December 7, 07:25 PM, according to Investor Gain. With a price band of Rs 790, Doms IPO's estimated listing price is Rs 1,258 (cap price + today's GMP), which is at a premium of 59.24 per cent as against the issue price.
Doms Industries plans to utilise the IPO proceeds to partially fund a Rs 453.57 crore capital expenditure (capex) project. This project involves establishing a new manufacturing facility to expand production capabilities for various writing instruments, watercolor pens, markers, and highlighters in Umbergaon, where the company already operates multiple units.
Post-issue, Fila will remain the single largest shareholder with a 51 per cent stake, having invested close to Rs 300 crore since 2012. Together with the Italian partner, the promoters will hold a 75 per cent equity stake.
Key stakeholders in Doms Industries include Santosh Raveshia (17 per cent), Sanjay Rajani (8.63 per cent), Ketan Rajani (8.63 per cent), and others holding smaller percentages. Umbergaon, located in the Valsad district of Gujarat, is renowned as the pencil town of the country, hosting major players such as Hindustan Pencils (40 per cent market share) and Doms (controlling 30 per cent of the market).
Published By : Sankunni K
Published On: 7 December 2023 at 20:14 IST