DOMS appoints JM Financials Ltd as one of the issue's bankers for its ₹1,200 crore IPO

DOMS Industries, India's second-largest pencil maker, plans to file draft papers for a ₹1,200 crore IPO with SEBI in August's second week. Italy's F.I.L.A. Group, holding a 51% stake in DOMS, intends to offer ₹800 crore worth of shares in the IPO. The company aims to use the funds to establish a significant manufacturing facility in the stationery industry across the Asia Pacific region. It has allocated ₹800 crore for this purpose from FY23 to FY28. DOMS has hired JM Financial Ltd as one of the issue's bankers.

DOMS witnessed a substantial revenue surge of 77% in FY23, closing at ₹1,212 crore, primarily due to increased demand for its pencil segment. Crisil reports estimate its operating margin for FY23 to exceed 15%. The company currently has a capacity of 6.5 million pencils per day.

Additionally, DOMS acquired a 30% stake in toy maker Clapjoy earlier this year to expand its presence into new segments. It operates under the brands DOMS and C3, serving both premium and economy segments.

Crisil reports a healthy capital structure for the company, with limited reliance on external debt. DOMS is projected to generate cash accruals of over ₹160 crore over the medium term and has sufficient funds for debt repayment, capex requirements, and working capital needs.

Content source: Media reports