DOMS Industries IPO subscribed 93 times on final day
The Rs. 1,200 crore initial public offering (IPO) of Gujarat-based DOMS Industries saw strong investor interest on the final day of bidding. BSE data revealed that investors placed bids for 82,53,50,256 equity shares, or 93.40 times the 88,37,407 equity shares offered for subscription. Retail investors' allocation was subscribed 69.10 times, while non-institutional investors' portion saw a subscription of 66.47 times. Employee allocation was booked 28.75 times, and the quota for qualified institutional bidders attracted bids nearly 116 times the allocation.
Company profile and analysts' views
DOMS Industries, a leading player in the stationery and art product sector, has a global presence in over 40 countries. SBICap Securities stated, "We believe the company has robust growth potential led by a well-established distribution network, strong brand recall and well-planned capacity expansion program." Hem Securities also gave a subscribe rating on the issue, emphasizing DOMS's extensive product range, strong brand recall driven by high-quality and innovative products, and strategic partnership with FILA enabling access to global markets.
IPO details
The company 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 shares are priced in the band of Rs. 750-790 apiece with a lot size of 18 shares and its multiples thereafter. The company's shares are expected to be listed on both the BSE and NSE exchanges on December 20.
GMP trends show upside of up to 70%
DOMS Industries's IPO was commanding a grey market premium of Rs. 530 per share, indicating an upside of 65-70% compared to the upper end of the price band, according to investorgain.com. Considering the upper end of the IPO price band and the current premium in the grey market, DOMS shares could potentially debut at Rs. 1,320 apiece, or 67.09% above the Rs. 790 IPO price.
