DOMS Industries Limited IPO 

DOMS Industries Limited is a leading manufacturer of stationary and art materials and it can trace its journey back to nearly 4 decades. It sells its products in over 40 countries across the world in the USA, Europe, Africa, Asia-Pacific and West Asia. Its core products such as mathematical instrument boxes and pencils enjoy attractive market shares of 30% and 29% respectively. 

If you’ve been interested in investing in the upcoming IPO of DOMS Industries Limited, give this blog a quick read. All the important details have been listed here for your benefit. 

Also Read: IPO investment strategy

About the Company 

DOMS Industries Limited is one of India’s leading and fastest-growing stationery product manufacturers. Nearly 4 decades back, Shri Rasiklal Amritlal Raveshia and Shri Mansukhlal Jamnadas Rajani formed a partnership firm named R.R Industries. This firm cemented its place in the business of manufacturing and sale of various stationery products and art materials. 

The flagship brand of this firm, DOMS, was launched in 2005 and since then it has completely revolutionised the stationary and art material industry in India. The product offerings of this firm are divided into 7 categories; they are- scholastic stationery, scholastic art material, kits and combos, paper stationery, hobby and craft, fine art products, and office supplies. 

In 2012, the manufacturer entered into a strategic partnership with FILA (Fabbrica Italiana Lapis ed Affini S.p.A), an Italian multinational company which helped DOMS Industries get a foothold in the global market. This partnership also resulted in better distribution of its products and improvement in R&D and technological capabilities. 

Recently, DOMS Industries has been focused on strategic acquisitions which increased their range of products associated with older children. In FY24, it acquired Micro Wood Pvt Ltd for backward integration of certain manufacturing processes. It has also acquired minority stakes in ClapJoy Innovations Pvt Ltd to diversify its offerings.

DOMS Industries IPO Details and Objectives 

DOMS Industries Limited has recently filed its DRHP with the capital markets regulator Securities and Exchange Board of India (SEBI). It aims to raise Rs. 1200 crore through an Initial Public Offering. 

Its maiden public issue comprises a fresh issue of equity shares totalling up to Rs. 3,500.00 million. According to information provided in the DRHP, it will also open an Offer for Sale comprising shares aggregating up to Rs. 8,500 million by the promoters.

DOMS Industries Limited aims to use the funds raised through the IPO to establish a new manufacturing facility. The new infrastructure will increase the company’s ability to manufacture a varied range of writing instruments, markers and highlighters, watercolour pens, and more. 

Strengths  

It’s always a good idea to assess the qualitative factors of a company before investing in its IPO. Apart from helping you make a better investment decision, you can understand the potential of a company: 

Take a look at the strengths of DOMS Industries Limited below: 

• The company occupies a leading position in the stationary and art materials industry in India. Its diverse range of products has been instrumental in driving business growth. 
• The company has maintained a strong focus on maintaining high quality, innovation, and differentiation of products. As a result, it enjoys a strong brand recall value. 
• The manufacturing infrastructure of DOMS Industries Limited is of international standards. Moreover, it has its focus on backward integration to drive efficiencies. 
• It has a strategic partnership with FILA which has helped the company to get access to international markets and product know-how. 
• The multi-channel distribution network of DOMS Industries Limited is very strong. It has a strong presence both in India and across the world. 
• Its promoters and members of management are quite experienced and knowledgeable. 

Risks Involved 

It would be wise to take into account the risks involved with investing in the IPO of DOMS Industries Limited. It will help you to figure out whether investing in this IPO would be lucrative or not. 

Check the risks involved below: 

• DOMS Industries Limited derives a substantial portion of its revenue from the sale of its key products which has led to a high concentration risk. 
• If the company fails to manage its general trade distribution network effectively, there might be an adverse impact on its overall business, operations, and financial condition. 
• If the brand image and reputation take a hit, the overall business of DOMS Industries will suffer adversely. 

Also Read: Risk of investing in IPO

Summary

DOMS Industries Limited is one of the leading manufacturers of stationery products and art materials in India. It sells its products in over 40 countries over the world. Recently, the company has filed its DRHP with market regulator SEBI to raise capital for a new manufacturing facility. 

You can keep an eye on our website to keep track of when the IPO will be going live. 

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