DOMS Industries shares debut with 77% premium at Rs. 1,400
DOMS Industries made a remarkable entrance on the stock market, with shares listing at Rs. 1,400 per share on the NSE and BSE, a whopping 77.2% premium over its IPO price of Rs. 790. Analysts had anticipated this impressive debut, as DOMS boasts a strong brand, diverse product range, and solid manufacturing capabilities. Shivani Nyati, Head of Wealth at Swastika Investmart, believes these factors position the company well for ongoing growth.
IPO details
The DOMS Industries IPO, valued at Rs. 1,200 crore, included a fresh issue of shares worth Rs. 350 crore and an offer for sale (OFS) totaling Rs. 850 crore. The IPO price band ranged from Rs. 750 to Rs. 790 per equity share with a face value of Rs. 10. The subscription period lasted from December 13 to December 15, and by the final day, the IPO had received an astounding response from investors, being subscribed 93 times.
How the company intends to utilize IPO funds
DOMS Industries intends to use the net proceeds from the new issue for general corporate purposes and to partially fund the establishment of a new manufacturing facility. This facility aims to boost production capacity for various writing instruments, watercolor pens, markers, and highlighters. In FY23, the company saw a 41% year-on-year decline in revenue from operations, totaling Rs. 403 crore, along with a loss of Rs. 6 crore.
Whether to hold, buy more, or book profits?
Regarding DOMS Industries's future prospects, Nyati of Swastika Investmart advised allottees to book profit but suggested that long-term investors may hold the stock by keeping a stop loss at Rs. 1,260. She added that a fresh buy would not be recommended at such a high level. Meanwhile, India Shelter Finance Corporation also had a strong market debut alongside DOMS Industries, with shares listing at a 25% premium over the IPO price.
