DOMS Industries shares got listed at a premium of 77.2% (Rs 610) at Rs 1400 apiece on the bourses on Wednesday. The issue was priced at Rs 790 at the upper end.
Net proceeds will be utilised for the part funding of the cost of establishing a new manufacturing facility and general corporate purposes.
According to stock market experts, DOMS IPO has received strong response from investors and Dalal Street mood is also positive. They said that DOMS IPO share price may open on Indian bourses at a premium of near 60 to 65 per cent. However, experts maintained that much will depend upon the market mood and may list up to 1,300 apiece levels if the market opnes positive during early morning deals on Wednesday. But, in case of tepid opening, DOMS IPO listing price may end up around Rs 1,250 apiece levels.
Speaking in DOMS share price listing, Amit Goel, Co-Founder and Chief Global Strategist at Pace 360 said, “DOMS industries limited is engaged in design, development, manufacturing, and sales of a wide range of stationery and art products. It was incorporated in 2006. They are the 2nd largest player in India’s branded ‘stationery and art’ products market, with a market share of 12%. It is on an expansion spree to enhance its product range as well as capacity to meet the rising demand.”
Stock market observers said that DOMS share price is trading at a premium of Rs 498 in grey market today. This means, DOMS IPO grey market premium (GMP) today is Rs 1,288, which is around 65 per cent higher from DOMS IPO price band of Rs 750 to Rs 790 per share.
So, both DOMS IPO GMP and experts are predicting up to 65 per cent listing gain for allottees.
The stationery and art products maker that gets 70 percent of its business from scholastic stationery and art material segments raised Rs 1,200 crore from the public issue. The offer comprises a fresh issue of 44.3 lakh shares worth Rs 350 crore and an offer-for-sale (OFS) of 1.07 crore shares, the proceeds from which will go to selling shareholders.
DOMS Industries design, develop, manufacture and sell a wide range of stationery and art products, primarily under the flagship brand ‘DOMS’ in over 45 countries. It is the second largest player in India’s branded ‘stationery and art’ products market, with a market share of 12 per cent, just behind ITC, which has a 20 per cent market share. The company’s core products such as ‘pencils’ and ‘mathematical instrument boxes’ dominate the market with 29 per cent and 30 per cent market share, respectively.
What Should Investors Do?
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd., “DOMS Industries has debuted at Rs. 1405 i.e. 77 per cent above its issue price. Its strong brand, diverse product portfolio, and robust manufacturing position it well for continued growth. Multi-channel distribution and strategic partnerships expand its reach. Doms has demonstrated impressive financial growth in recent years, solidifying its market position and future potential. The issue came at a P/E of 43x, which was fully priced. Thus, considering such a premium on listing, allottees who applied for the public offering for listing premium are advised to book profit however investors with long-term view may hold it by keeping a stoploss at Rs 1260. A fresh buy will not be recommended at such a high level.”
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